https://en.sputniknews.africa/20241218/nigeria-moves-to-strengthen-naira-senate-proposes-ban-on-foreign-currency-in-local-transactions-1069771900.html
Nigeria Moves to Strengthen Naira: Senate Proposes Ban on Foreign Currency in Local Transactions
Nigeria Moves to Strengthen Naira: Senate Proposes Ban on Foreign Currency in Local Transactions
Sputnik Africa
In early November, Taiwo Oyedele, head of Nigeria's Presidential Fiscal Policy and Tax Reforms Committee, told a Western media outlet that Nigeria is... 18.12.2024, Sputnik Africa
2024-12-18T11:52+0100
2024-12-18T11:52+0100
2024-12-18T11:52+0100
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Nigeria’s senate has taken a step toward bolstering the national currency by introducing a bill to ban the use of foreign currencies for domestic payments and transactions. The proposed legislation, sponsored by Senator Ned Nwoko, aims to make the naira the sole legal tender for all financial operations within the country, including salaries, exports, and other transactions, local media reported on Tuesday.The bill, 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,” passed its first reading on Tuesday. It seeks to address the widespread use of foreign currencies, such as the US dollar and Pound of sterling, which Senator Nwoko described as a colonial relic undermining Nigeria’s economic independence.He added that it also mandates that crude oil and other exports be sold exclusively in naira, compelling international buyers to purchase the local currency. The senator emphasized that this approach would drive demand for the naira, stabilize its value, and reduce dependence on foreign currencies.At the same time, he assured Nigerians that they would continue to have access to foreign exchange for legitimate purposes, like travel. Reforms are planned to simplify access to Basic Travel Allowance and other foreign exchange requirements.The legislation further aims to eliminate informal currency markets and discourage unethical practices such as round-tripping by financial institutions. By positioning the naira as the central currency for all transactions, the senate hopes to strengthen confidence in Nigeria’s financial system and foster economic stability, reports said.
https://en.sputniknews.africa/20241207/nigerias-senate-reportedly-moves-to-criminalize-corn-exports-to-combat-hunger-1069592837.html
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nigeria, economy, west africa, local currency, us dollar, reforms, exchange, independence, travelling
Nigeria Moves to Strengthen Naira: Senate Proposes Ban on Foreign Currency in Local Transactions
Christina Glazkova
Writer / Editor
In early November, Taiwo Oyedele, head of Nigeria's Presidential Fiscal Policy and Tax Reforms Committee, told a Western media outlet that Nigeria is implementing tax reforms to double its tax revenue as a percentage of GDP in the next two to three years, aiming to address rising deficits and borrowing costs.
Nigeria’s senate has taken a step toward bolstering the national currency by introducing a bill to ban the use of foreign currencies for domestic payments and transactions. The proposed legislation, sponsored by
Senator Ned Nwoko, aims to make the naira the sole legal tender for all financial operations within the country, including salaries, exports, and other transactions, local media reported on Tuesday.
The bill, 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,” passed its first reading on Tuesday. It seeks to address the widespread use of foreign currencies, such as the US dollar and Pound of sterling, which Senator Nwoko described as a
colonial relic undermining Nigeria’s economic independence.
“[This bill will] prohibit salaries, transactions, and payments in foreign currencies, ensuring all workers, including expatriates, are paid in naira,” Nwoko was quoted as saying.
He added that it also mandates that crude oil and other exports be sold exclusively in naira, compelling international buyers to purchase the local currency. The senator emphasized that this approach would drive demand for the naira, stabilize its value, and reduce dependence on foreign currencies.
At the same time, he assured Nigerians that they would continue to have access to foreign exchange for legitimate purposes, like
travel. Reforms are planned to simplify access to Basic Travel Allowance and other foreign exchange requirements.
The legislation further aims to eliminate informal currency markets and discourage unethical practices such as round-tripping by financial institutions. By positioning the naira as the central currency for all transactions, the senate hopes to strengthen confidence in Nigeria’s financial system and foster
economic stability, reports said.
