CBN moves against use of foreign currency as medium of exchange

The Central Bank of Nigeria (CBN) on Tuesday moved against the use of foreign currency as a medium of exchange in the country, as it advises the general public to report any contravention of the provision of the Act to the Economic and Financial Crimes Commission (EFCC) and the CBN for appropriate action.

The move is coming on the heels of increasing use of foreign currencies in the domestic economy as a medium of payment for goods and services by individuals and corporate, which has come to the notice of the Apex bank.

In a statement signed by Ibrahim Mu’azu, director, Corporate Communications, it has also been observed that some institutions price their goods and services in foreign currencies and demand payments in foreign currencies rather than the domestic currency (the Naira), which is the legal tender in Nigeria.

“For the avoidance of doubt, the attention of the general public is hereby drawn to the provisions of the CBN Act of 2007, which states inter-alia that “the currency notes issued by the Bank shall be legal tender in Nigeria…for the payment of any amount”, the CBN said.

The Act stipulates that any person(s) who contravenes this provision is guilty of an offence and shall be liable on conviction to a prescribed fine or six months imprisonment.

According to the CBN, this prohibition, however, is without prejudice to foreigners, visitors and tourists who are encouraged to continue to use their cards for payments or exchange their foreign currency for local currency at any of the authorized dealers’ outpost.

 

HOPE MOSES-ASHIKE