The Nigerian Senate has advanced a bill seeking to prohibit the use of foreign currencies for payments and transactions within the country.

The legislation, which passed its first reading on Tuesday, aims to ensure that all domestic financial activities, including salaries and payments, are conducted exclusively in naira.

Titled: “A Bill for an Act to Alter the Central Bank of Nigeria Act, 2007, No. 7, to Prohibit the Use of Foreign Currencies for Remuneration and for Other Related Matters,” the proposal was sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation.

The bill mandates that all exports, including crude oil, be paid for in naira.

Senator Nwoko highlighted the detrimental impact of foreign currency usage on Nigeria’s economy, arguing that it weakens the naira and perpetuates economic challenges.

“The dominance of the dollar, Pound Sterling, and other foreign currencies in domestic transactions is a colonial hangover that continues to undermine Nigeria’s economic sovereignty,” he stated.

The proposed legislation seeks to make it compulsory for all workers, including expatriates, to receive their salaries in naira.

Additionally, it would require international buyers of Nigerian exports to purchase the naira for transactions, a move intended to boost the currency’s demand and value.

According to Nwoko, the bill also aims to eliminate informal currency markets and discourage unethical practices such as round-tripping by banks, ultimately strengthening the formal economy.

“This law will position the naira as the central currency for all financial operations, reinforcing its role as the backbone of Nigeria’s economy,” he explained.

The Senate’s proposal reflects efforts to restore confidence in the naira and reduce reliance on foreign currencies, promoting economic stability and independence.