Senator Ned Munir Nwoko, representing Delta North senatorial district, has proposed a bill to strengthen the naira’s value. The bill seeks to prohibit the payment of salaries and transactions in foreign currencies in Nigeria. It has passed the first reading in the Senate and is 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 Remunerations and for Other Related Matters.”
The bill aims to make naira payments mandatory for exports, transition the financial system to naira, eliminate the parallel market, support local manufacturers, reform foreign reserve practices, and adopt comprehensive policies.
Senator Nwoko’s proposal comes at a crucial time. Some Nigerians are increasingly using the dollar for transactions, which threatens the naira’s value and the nation’s economic sovereignty. The bill seeks to restore confidence in the naira and foster patriotism, urging Nigerians to prioritize their national currency.
This intervention is bold and patriotic. The bill will ensure that all workers, including expatriates, are paid in naira. It will also encourage confidence in the local currency, strengthen its value, and reduce demand for dollars. This will support local manufacturing, create accessible credit for businesses, and reduce dependence on imports. By shifting away from foreign currency reliance, the bill promotes national pride and economic self-reliance.
Countries like Morocco have shown that such a policy can work. The Moroccan Dirham has maintained stability against major currencies for over 35 years. Senator Nwoko believes Nigeria, with its vast resources and dynamic population, can achieve similar success. The transition to naira will be voluntary for those with domiciliary accounts, and as the naira strengthens, citizens will see less need for foreign currency.
We urge the Senate to pass this bill swiftly. If passed, it will make the naira the central currency for all financial transactions, eliminate the informal currency market, and support economic growth. Banks will be more confident in offering loans at affordable rates, which will drive industrialization.
However, the government must also implement policies that further support the naira’s value. Attracting foreign direct investment, improving infrastructure, and easing business operations will be essential to Nigeria’s economic growth.