Nigeria Must Prohibit Dollar Transactions to Revive Naira, Nwoko Declares
By Austin Oyibode
ABUJA/Nigeria: Senator Ned Nwoko, representing Delta North in the National Assembly, has called for a ban on the use of foreign currencies for business transactions in Nigeria and the prohibition of luxury goods importation. The senator argued that these measures would bolster the value of the naira and drive local production.
Highlighting international practices, Senator Nwoko noted that in most countries, foreign visitors are required to convert their currencies to the local legal tender for transactions. He decried the lack of enforcement of a similar provision in Nigeria, despite its inclusion in the Central Bank of Nigeria (CBN) Act.
“You cannot pay for anything with the dollar in the United Kingdom. They use the pound in the UK. In America, it is the dollar. There is no country that uses multiple currencies. For this to work in Nigeria, anyone coming to buy anything must transact using the naira,” he explained.
He further stressed that the unrestricted use of foreign currencies in Nigeria has diminished global demand for the naira, making it undervalued and unappreciated internationally. “Currently, nobody looks for the naira because we have made it so cheap to transact business in dollars and other currencies. If the law is amended and enforced, foreigners will need to exchange their currencies for the naira before doing business here. This will create global demand for the naira, subsequently strengthening its value,” Nwoko added.
The senator lamented the current state of the naira, which, he said, is in little to no demand outside Nigeria. “If you carry a load of naira to Heathrow Airport, people will tell you there’s no demand for it. To enhance its value, we must prohibit the use of foreign currencies for local transactions, ensuring people seek the naira for business in Nigeria. This will lead to a significant appreciation of its value.”
He proposed that even for the purchase of crude oil, payments should be made in naira. Nwoko also condemned the practice of paying foreign workers in Nigeria with foreign currencies, calling it discriminatory and a humiliation for the naira. “In other countries, you are paid in their local currency, regardless of your job. Nigeria must protect its currency and ensure equal treatment for all workers,” he stated.
In addition to his stance on foreign currency transactions, Senator Nwoko advocated for a ban on the importation of luxury goods, emphasising the need for self-reliance. “Anything we cannot produce, we should not import. This will compel us to produce locally. The government must prohibit the importation of luxury items and refined products. We cannot continue to import and expect different outcomes,” he argued.
He called for robust patronage of the Dangote Refinery and urgent steps to repair the country’s national refineries. “Nigeria is the only oil and gas-producing country that imports refined products. This is unacceptable. We must prioritise local refining to achieve economic independence,” he concluded.
Nwoko’s proposals highlight a strategic shift towards economic nationalism, focusing on strengthening the naira and fostering domestic production to revitalise the Nigerian economy.
