A bill seeking to prohibit the use of foreign currencies for domestic transactions has passed its first reading in the Senate. The bill, sponsored by Senator Adamu Ibrahim, is aimed at addressing the growing dollarization of the Nigerian economy, which lawmakers argue undermines the naira’s value and hinders economic stability.
Senator Ibrahim explained that the widespread use of foreign currencies, particularly the US dollar, for transactions within Nigeria has contributed to inflationary pressures and reduced confidence in the naira. He noted that prohibiting such practices would help strengthen the local currency and boost economic sovereignty.
The bill proposes that all domestic transactions, purchases, and payments be conducted exclusively in naira. Exceptions would only apply to international trade and dealings explicitly recognized by regulatory authorities. Violators could face fines or legal sanctions to ensure compliance.
The legislation has sparked mixed reactions among stakeholders. While some economists argue that it is a necessary step to stabilize the economy, others caution that the government must first address underlying issues such as inflation, currency scarcity, and foreign exchange policies. The bill will undergo further readings and stakeholder consultations before being passed into law.
