The All Progressives Congress (APC) and the Labour Party (LP) have expressed support for a proposed legislation aimed at prohibiting the use of foreign currencies for local transactions in Nigeria. The bill, sponsored by Senator Ned Nwoko, seeks to amend the Central Bank of Nigeria Act 2007 to mandate the exclusive use of the naira for all payments and transactions within the country.
Objectives of the Proposed Legislation
The bill aims to address the growing trend of “dollarisation” in Nigeria, where foreign currencies like the US dollar are increasingly used for domestic transactions. By promoting the naira as the sole currency for local payments, the legislation seeks to:
- Strengthen confidence in the naira.
- Eliminate discriminatory financial practices.
- Foster economic independence by reducing reliance on foreign currencies.
Senator Nwoko described the practice of using foreign currencies for local transactions as a colonial relic that undermines the value of the naira and perpetuates economic challenges.
Labour Party’s Perspective
LP National Publicity Secretary, Obiora Ifoh, voiced the party’s support for the bill, emphasizing the detrimental effects of foreign currency usage on the economy.
“Nigeria’s economy is suffering due to upscale individuals and companies conducting transactions and even paying salaries in dollars. It is a practice that devalues the naira and signals poor economic health,” Ifoh stated.
Drawing parallels with China, where transactions are strictly conducted in the local currency, Ifoh called for similar measures in Nigeria to instill pride in the naira.
While acknowledging that foreign currency usage cannot be entirely eradicated, Ifoh proposed stringent penalties for those found transacting in foreign currencies. “If it becomes law, hoarding or transacting in foreign currencies should attract forfeiture of funds and jail time,” he added.
APC’s Position
The APC also endorsed the legislation, emphasizing its potential to enhance the naira’s strength and restore its prestige.
Bala Ibrahim, the APC National Publicity Director, noted, “Paying people and conducting transactions in foreign currencies diminishes the naira, reducing it to a second-class status. This bill is a welcome development and should be implemented rigorously.”
Ibrahim added that the legislation, while not banning individuals from carrying foreign currencies, would create mechanisms to ensure the naira becomes the dominant and prestigious currency for transactions.
The Economic Implications
Proponents of the bill believe it could address systemic issues contributing to the naira’s decline, including speculative hoarding of foreign currencies and the preference for foreign denominations in high-level transactions.
The legislation also seeks to send a strong message about the government’s commitment to economic sovereignty and confidence in its national currency.
Challenges Ahead
Despite widespread support, critics argue that the bill may face challenges in implementation, particularly in sectors like real estate and high-value services where dollar transactions are common. Ensuring compliance and addressing loopholes will require robust enforcement mechanisms and public awareness campaigns.
Conclusion
The proposed legislation reflects a growing consensus among political leaders on the need to prioritize the naira and address practices that undermine its value. If successfully implemented, the bill could serve as a pivotal step toward strengthening Nigeria’s economy and restoring the naira’s position as a symbol of national pride and economic independence.
