The All Progressives Congress and Labour Party have backed the ongoing move by lawmakers to ban the use of foreign currencies for local transactions in the country.
The proposed legislation, which 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’ had scaled the first reading at the Senate two weeks ago.
The bill, aimed at ensuring all payments, including salaries and transactions, are done in naira, seeks to eliminate discriminatory practices and strengthen confidence in the local currency.
It was sponsored by Senator Ned Nwoko, who is the Chairman of the Senate Committee on Reparations and Repatriation.
Nwoko lamented that the widespread use of foreign currencies in Nigeria’s financial system undermined the value of the naira, perpetuating economic challenges.
He also described the use of foreign currencies for domestic transactions as a colonial relic that continued to hinder Nigeria’s economic independence.
Commenting on the bill, the National Publicity Secretary of LP, Obiora Ifoh told Saturday PUNCH that the opposition party supported the move for the ‘dollarisation of the economy’ to be halted.
Ifoh stated that it was becoming obvious that some ‘upscale persons’ were injuring the economy through the use of foreign currencies.
He said, “I also see no reason for some companies to be paying salaries in dollars. After all, even our budget is done in Naira. Nigerians need to see how worthless our currency has become. So, it shows that Nigeria is not doing very well.
“I think the dollar and foreign currencies should be scrapped completely. A few months ago, I was in China and discovered that every business conducted was in their Yuan. They don’t even do anything with the dollars. The Naira is the pride of this nation and this government should continue to work towards making sure it is used in our economies.
“Imagine having $10,000 in your pocket, it means you are moving around with almost N20m. This is exactly what most people at the top do in this country. They prefer to move around with such money in their wallet. These are things that continue to make our economy go down.”
The LP spokesperson said though usage of foreign currencies couldn’t be completely stopped, having a law to ban people from transacting with them in Nigeria would strengthen the Naira.
“I know you can’t completely stop dollars from being used. If it becomes a law and you are found hoarding foreign currency, you know there will be a penalty. You will forfeit the money and go to jail as well. This will go a long way in building the strength of our Naira for it to start gaining strength,” he added.
The ruling APC also threw its weight behind the proposed legislation.
In an exclusive interview, the National Publicity Director of the party, Bala Ibrahim, expressed conviction that the ban would strengthen the national currency over time.
“This is a welcome development. In fact, it diminishes the value of our currency. If we are going to be paying other people and doing official transactions in foreign currency, we are reducing our currency to a second-class status. So, it is a welcome development. I support it and I think it should be implemented to the letter.
“Of course, that is not to say people will not carry dollars in their pocket. But there will be lots of ways where we strengthen the value of our own money. Once our own money gains prestige and position in the market, there is no need to question what the current foreign currency is all about,” he stated.