In response to the current forex challenges plaguing Nigeria, the Central Bank of Nigeria (CBN) has prohibited the use of foreign currencies for transactions within the country.
Underlining its stance, the CBN invoked the provisions of the CBN Act, 2007, which explicitly designates the local currency as the legal tender in Nigeria.
Individuals and corporate entities are now cautioned against accepting or making payments in foreign currencies for goods and services, with violations carrying severe consequences.
According to a statement by Ibrahim Muazu, the CBN’s Director of Corporate Communications, the central bank has observed a rising trend of foreign currency usage in domestic transactions.
Muazu emphasized the legal framework, stating that any contravention of the CBN Act could lead to fines or a six-month prison term upon conviction.
The apex bank expressed concern over some institutions pricing their goods and services in foreign currencies, contrary to the legal tender—the Naira. To enforce compliance, the CBN urged the public to report any breaches of this directive to both the Economic and Financial Crimes Commission (EFCC) and the CBN for appropriate action.
While enforcing the ban, the CBN clarified that foreigners, visitors, and tourists are exempt, encouraging them to use cards for payments or exchange their foreign currency for the local currency at authorized dealers’ outposts.
