Nigeria Bans Use of Dollar, Pounds Other Foreign Currencies for Local Transaction

Nigeria Bans Use Use of Dollar, Pounds Other Foreign Currencies for Local Transaction
The Central Bank of Nigeria (CBN) has placed a total ban on the use of United States Dollars, United Kingdom Pounds Sterling, and other foreign currencies for transactions within the Federal Republic of Nigeria.

This was contained in a statement released by the Directorate of Corporate Communication in the apex bank.

The statement insisted that it is now an offense to "Use foreign currencies in the domestic economy as a means of payment for goods and services by individuals and corporate organizations.

CBN relied on the provisions of the CBN Act, 2007, which stipulates, among others, the use of local currency as a legal tender in Nigeria and the consequences for its violation, which include a fine or six-month prison term.

This is one of the measures taken by the apex bank in its attempt to stabilize the exchange rate in the country. Recall that the recent hike in the exchange rate of the Naira to the Dollar had caused "runaway" inflation among residents of the country. However, the top government officials managing the economy have vowed to bounce the economy back to normal.

CBN, however, vows that any defaulter of the new regulation will strictly be dealt with.

The apex bank said, “It has also been observed that some institutions price their goods and services in foreign currencies and demand payments in foreign currencies rather than the domestic currency (the Naira), which is the legal tender in Nigeria.

“For the avoidance of doubt, the attention of the general public is hereby drawn to the provisions of the CBN Act of 2007, which states inter-alia that “the currency notes issued by the Bank shall be legal tender in Nigeria…for the payment of any amount”.

“Furthermore, the Act stipulates that any person(s) who contravenes this provision is guilty of an offense and shall be liable on conviction to a prescribed fine or six months imprisonment.

“This prohibition, however, is without prejudice to foreigners, visitors, and tourists who are encouraged to continue to use their cards for payments or exchange their foreign currency for local currency at any of the authorized dealers’ outposts.

“The general public is hereby advised to report any contravention of the provision of this Act to the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) for appropriate action."

Category: World-News
Tag: Nigeria Bans Use Use of Dollar Pounds Other Foreign Currencies for Local Transaction
Written by Author (author)
Published 2/4/2024 6:10:36 PM

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