A bill seeking to ban the use of foreign currencies in Nigeria has passed its first reading in the Senate. 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 Other Related Matters," the legislation aims to prioritize the naira for all financial transactions, including salaries and payments.

Sponsored by Senator Ned Nwoko, Chairman of the Senate Committee on Reparations and Repatriation, the bill seeks to curtail the use of foreign currencies like the US dollar and British pound in domestic transactions. Senator Nwoko criticized the practice as a “colonial relic” that undermines the naira’s value and hampers Nigeria’s economic independence.

“The widespread use of foreign currencies perpetuates economic instability and weakens the naira. It is time we prioritise our own currency to achieve true economic sovereignty,” Nwoko said.

If enacted, the law would mandate a shift to the naira for all forms of payments, significantly influencing various sectors and reinforcing Nigeria’s local currency. The bill’s advancement highlights growing legislative efforts to tackle the naira’s depreciation and reduce dependency on foreign exchange.

The Senate will continue deliberations as the bill progresses through subsequent readings and committee reviews.