House seeks ban on foreign currencies for local transactions

Category: Business Published on Friday, 15 February 2013 05:00 Written by Turaki A. Hassan

The House of Representatives has called on the Central Bank of Nigeria (CBN) to ban the use of foreign currencies as a means of exchange in local and domestic transactions in Nigeria.

Adopting a motion on the matter moved by Nadu Karibo (PDP, Bayelsa), lawmakers lamented the use of United States dollar for business transactions by some people in Nigeria.

Leading debate on the motion, Karibo faulted the growing trend in the use of some foreign currencies especially the US dollar for payments of school fees, hotel bills, real estate rent and purchase in bars, night clubs and luxury goods shops among others.

“The growing trend has led to the high demand of these foreign currencies in Nigeria and is contributing seriously to the weakening of the naira against such currencies with its resultant negative effects on our economy,” the lawmaker said.

However, Ogbuefi Ozomgbachi stoutly opposed the motion, arguing that there are enough laws in place to take care of the issue and that any attempt to restrict the free flow of foreign currencies will have negative impact on the economy.

On his part, Ali Madaki said; “If we are really serious and want to improve our economy there is no reason for anybody to be transacting with foreign currency in Nigeria.”