CBN Cracks Down On Use Of Foreign Currencies For Domestic Transactions

The Central Bank of Nigeria (CBN) has warned against the increasing pricing of goods and services as well as demand for payment in foreign currencies for domestic transactions saying it contravenes local laws.

The apex bank in a statement on Tuesday said the Naira remains the only legal tender in Nigeria and warned that violators will be prosecuted.

“The attention of the Bank has been drawn to the increasing use of foreign currencies in the domestic economy as a medium of payment for goods and services by individuals and corporates. 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”.

“Furthermore, 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. 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.

“The general public is hereby advised to report any contravention of the provision of this Act to the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) for appropriate action,” the bank said in the statement.