A bill to ban the use of foreign currencies for transactions within Nigeria, has passed first reading in The Senate.

The proposed legislation will see all payments, including salaries and transactions, paid in naira.

The lawmakers are seeking to eliminate discriminatory practices and strengthen confidence in the local currency.

This includes making it mandatory for exports to be paid for in naira.

The bill was 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.”

It was sponsored by Senator Ned Nwoko, who is the Chairman of the Senate Committee on Reparations and Repatriation.

According to Senator Nwoko, the widespread use of foreign currencies in Nigeria’s financial system undermines the value of the naira, perpetuating economic challenges.

He described the use of the dollar, Pound Sterling, and other foreign currencies for domestic transactions as a colonial relic that continues to hinder Nigeria’s economic independence.

He said the bill seeks to “prohibit salaries, transactions, and payments in foreign currencies, ensuring all workers, including expatriates, are paid in naira.”

He also proposed that “crude oil and other exports to be sold exclusively in naira, compelling international buyers to purchase the currency and driving its demand and value.”

He argues that the law will “position the Naira as the central currency for all financial operations, reinforcing its dominance in the economy.”