Dollar Usage Prohibited for Local Transactions – CBN

By Iyojo Ameh

The Central Bank of Nigeria (CBN) has taken a firm stand against the use of Dollars for domestic transactions within the country. The directive, communicated through a press release signed by Ibrahim Mu’azu, Director of Corporate Communications, underscores the CBN’s concerns regarding the increasing reliance on foreign currencies for local economic activities.

The press release emphasizes the legal status of the Naira as the exclusive legal tender, citing the CBN Act of 2007.

The Act explicitly designates currency notes issued by the bank as the sole accepted means of payment within Nigeria. Any violation of this provision is deemed a punishable offense, with a prescribed fine or six months imprisonment upon conviction.

It’s important to note that this prohibition does not extend to foreigners, visitors, and tourists, who are encouraged to utilize their cards for transactions or exchange their foreign currency for the local currency at authorized dealers’ locations.

To ensure adherence to the new regulation, the general public is urged to promptly report any violations of this Act to both the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) for appropriate action. This bold move by the CBN signifies a strong commitment to safeguarding the integrity of the Naira in local transactions.