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A brand new invoice in search of to ban the usage of foreign currency such because the US Greenback and British Pound Sterling for home transactions in Nigeria has handed its first studying within the Senate.
The proposed laws, titled “A Invoice for an Act to Alter the Central Financial institution of Nigeria Act, 2007, No. 7, to Prohibit the Use of Overseas Currencies for Remuneration and Different Associated Issues,” was launched by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.
The invoice goals to determine the Naira as the only real authorized tender for all monetary transactions performed inside Nigeria, together with funds, salaries, and different remunerations.
Proposed Financial Advantages
In his presentation, Senator Nwoko criticized the widespread use of foreign currency within the home monetary system, calling it a “colonial relic” that undermines the Naira’s worth. He argued that such practices erode Nigeria’s financial independence and perpetuate financial instability.
“The intensive use of foreign currency in our monetary transactions continues to erode the worth of the Naira and fosters a dependency that hinders Nigeria’s financial sovereignty. This laws is a step towards restoring confidence in our native foreign money and decreasing pointless pressures on our economic system,” Senator Nwoko acknowledged.
The invoice additionally seeks to encourage the adoption of the Naira, strengthen Nigeria’s economic system, and be certain that home monetary transactions rely solely on the nation’s personal sources.
Key Provisions
If handed, the invoice will:
Ban the usage of foreign currency for salaries, bonuses, and different types of remuneration inside Nigeria.
Prohibit the usage of foreign currency for native transactions to advertise reliance on the Naira.
Grant the Central Financial institution of Nigeria (CBN) extra authority to implement these measures and regulate foreign money use.
Blended Reactions Anticipated
Whereas the invoice has garnered assist for its potential to stabilize the Naira and promote financial independence, it’s more likely to face criticism relating to its feasibility.
Financial consultants and personal sector gamers might elevate considerations about Nigeria’s important reliance on foreign currency in worldwide commerce, diaspora remittances, and enterprise operations. Critics may additionally query the readiness of the economic system to adapt to such a coverage and the potential influence on sectors like actual property, import-export companies, and expatriate salaries.
Because the invoice progresses by way of the legislative course of, it’s anticipated to spark sturdy debate on how finest to steadiness financial sovereignty with the realities of worldwide commerce and funding.
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