The Senate has considered a bill seeking to prohibit the use of foreign currencies for local transactions in Nigeria.
The bill titled: “Central Bank of Nigeria (Establishment) (Amendment) Bill 2023,” was sponsored by Senator Steve Karimi (All Progressives Congress – Kogi West)
Karimi explained, in the explanatory memorandum of his bill, that the proposed legislation was aimed at amending the CBN Act to allow for greater accountability and transparency in the running of the apex bank and to prohibit the use of foreign currency in local transactions in Nigeria.
The bill seeks an amendment to Section 20 of the CBN Act, by inserting Section 20(a).
“(1) No person or corporate body shall use any foreign currency as a means of exchange for goods, services and other transactions in markets supermarkets, hotels, restaurants, airports and other places of business in Nigeria except by a bank.
“Licensed Bureau De Change and other financial institutions duly authorised by the Central Bank of Nigeria to trade, deal and use such currency and no individual or business entity in Nigeia shall advertise, denominate or price its goods or services in any currency other than the Nigerian Naira and Kobo.
“(2) Any person who contravenes subsection (1) of this section commits an offence and shall be liable on conviction to: (a) in the case of an individual, to a fine of N250,000.00 or a term of imprisonment, not exceeding six months or both such fine and imprisonment;
“(b) in the case of a corporate entity to a fine of N1,000,000 and a conviction of three months to its officers or directors who authorised or undertook the transaction.”