The Nigerian federal government has proposed that the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Port Authority (NPA) begin collecting all charges, fees, fines, and other payments in Naira rather than foreign currencies.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, made this announcement during a briefing at the State House in Abuja. He noted that this proposal is part of an economic stabilization bill that will be presented to the National Assembly (NASS).
According to Onanuga, the initiative is part of the government’s broader efforts to prioritize the use of local currency and reduce pressure on Nigeria’s foreign exchange market. He explained, “The amendment under the economic stabilization bill involves the operating laws governing NIMASA and the Nigerian Port Authority. All fees, charges, levies, fines, and other revenues accruing to these agencies will now be payable in Naira at the applicable exchange rate.”
Previously, NIMASA and NPA collected these payments in U.S. dollars, a practice the government is now aiming to change. Onanuga emphasized, “This government wants to place greater emphasis on our national currency, reducing the over-reliance on dollars within our economy.”
The proposal is part of a larger effort by the federal government to insulate the Nigerian economy from the fluctuations of the foreign exchange market, especially regarding the exchange rate between the Naira and the U.S. dollar. By requiring payments in Naira, the government hopes to reduce demand for foreign currency in the maritime sector, which would help ease the pressure on Nigeria’s forex market.
This initiative follows similar policies, including the Federal Executive Council’s approval for the Nigerian National Petroleum Company (NNPC) Ltd. to sell crude oil to the Dangote Refinery and other local refineries in Naira instead of dollars—diverging from the traditional practice of using foreign currencies for international commodities like crude oil.
The Naira has experienced significant volatility in the last 14 months, particularly since the unification of Nigeria’s foreign exchange market, which effectively devalued the currency. After stabilizing around ₦750 to the dollar in mid-2023, the Naira depreciated to ₦907 by the end of that year.
In 2024, the Naira saw extreme volatility, ranking as the worst-performing currency globally between February and March before rebounding to become the best-performing currency in April. However, it has since lost momentum, gradually depreciating to around ₦1,600 per dollar.
The government’s push for Naira-based transactions in key sectors like maritime aims to address these currency fluctuations and strengthen the local economy.
