The Central Bank of Nigeria (CBN) has officially implemented a ban on the use of the U.S. Dollar for transactions within the country’s domestic market. This decision, as outlined in a press release from the CBN, aims to curb the increasing use of foreign currencies for everyday transactions, which has been growing in recent years.
According to the announcement, signed by Ibrahim Mu’azu, the Director of Corporate Communications, the use of foreign currencies for purchasing goods and services within Nigeria undermines the value and role of the Naira. The CBN has reiterated that the Naira remains the country’s sole legal tender as per the CBN Act of 2007. This Act clearly stipulates that only the currency notes issued by the CBN are legally recognized as payment within Nigeria, and any violation of this law is punishable by fines or imprisonment of up to six months.
While this ban primarily targets domestic use of foreign currencies, it makes exceptions for foreign nationals, visitors, and tourists. These groups are encouraged to use international cards for their transactions or to exchange their foreign currency for the Naira through authorized agents. This provision ensures that foreigners can still engage in financial transactions without difficulty while upholding the dominance of the Naira in the local economy.
To ensure that the law is followed, the public is urged to report any violations to the Economic and Financial Crimes Commission (EFCC) or directly to the Central Bank for necessary legal actions.
This latest policy action demonstrates the CBN’s commitment to stabilizing the Nigerian economy by reinforcing the authority of the Naira and reducing the influence of foreign currencies in the domestic market. By encouraging the use of the Naira for local transactions, the CBN hopes to strengthen the value of the currency and reduce reliance on the U.S. Dollar for day-to-day commerce.
