CBN Warns Against Use of Foreign Currencies

Godwin Emefiele, governor, CBN

The Central Bank of Nigeria has advised Nigerians to report anybody transacting business in the country with foreign currency to the Economic and Financial Crimes Commission for necessary action

THE Central Bank of Nigeria, CBN, is concerned about the increasing use of foreign currencies in the economy. A statement from the bank which was made available to Realnews on April 7, and signed by Ibrahim Mu’azu, director, Corporate Communications, stated that the banks’ ‘attention 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.”

CBN 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. It added: “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,” the apex bank said.

However, it said that the prohibition 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. It also advised the general public 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.

— Apr. 20, 2015 @ 01:00 GMT


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