CBN Bans Use Of Foreign Currencies For Transactions In Nigeria

The Central Bank of Nigeria (CBN) has taken measures to address the ongoing foreign exchange crisis in the country, emphasizing the need to restore the value of the Naira. In a recent statement, the CBN issued a warning against the use of foreign currencies for transactions within the domestic economy, urging individuals and corporate organizations to adhere to the legal tender, the Naira.

Referencing the CBN Act of 2007, the apex bank highlighted the mandatory use of the local currency in Nigeria and the potential consequences for violating this regulation, including fines or a six-month prison term. The statement, signed by the CBN director of Corporate Communications, expressed concern over the growing trend of utilizing foreign currencies for payments and pricing goods and services by both individuals and businesses.

The CBN urged the public to report any instances of non-compliance with the Act to both the Economic and Financial Crimes Commission (EFCC) and the CBN. The statement clarified that while the prohibition applies to the use of foreign currencies by residents, it does not affect foreigners, visitors, and tourists who are encouraged to use their cards or exchange their foreign currency for the local currency through authorized dealers.

In light of these developments, the general public is advised to remain vigilant and report any violations to the appropriate authorities for necessary action.