Anti-Graft Agency Clamps Down on Dollarization to Safeguard Naira Stability
The Economic and Financial Crimes Commission (EFCC) has issued a stern warning to foreign missions operating in Nigeria, prohibiting them from conducting transactions in foreign currencies and enforcing the use of the Naira in their financial activities.
In a bid to combat the dollarization of the Nigerian economy and preserve the integrity of the Naira, the EFCC has also instructed Nigerian foreign missions abroad to adopt the Naira for their financial transactions.
The move comes as the EFCC expresses concerns over the invoicing of consular services by some foreign missions to Nigerians and other nationals in the United States dollar ($), a practice deemed unlawful and in violation of existing financial regulations in Nigeria.
In a letter addressed to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, dated April 5, 2024, EFCC Chairman Ola Olukoyede highlighted the legal provisions outlined in Section 20(1) of the Central Bank of Nigeria Act, 2007, which designates currencies issued by the apex bank as the sole legal tender in Nigeria.
Olukoyede emphasized the illegality of transactions conducted in currencies other than the Naira within Nigeria’s borders, citing the country’s monetary policies and regulatory framework.
The EFCC condemned the refusal of some missions to accept the Naira for consular services in Nigeria, stressing that such actions undermine the country’s sovereignty and economic stability.
The commission urged the Minister of Foreign Affairs to communicate its dissatisfaction to all missions in Nigeria and reiterate Nigeria’s expectation for compliance with existing laws and regulations.
Despite declining to comment on the matter, EFCC spokesperson Dele Oyewale confirmed the agency’s recent crackdown on currency-related offenses in a bid to safeguard the stability of the Naira.
Recent operations led to the arrest of Bureau De Change operators in Abuja’s Wuse Zone 4 market, as the EFCC intensifies efforts to curb illicit currency trading.
However, resistance from some operators during these raids has led to confrontations, indicating the challenges faced in enforcing regulatory measures.
In its ongoing efforts to combat foreign exchange fraud and stabilize the Naira, the EFCC remains steadfast in its commitment to upholding Nigeria’s monetary policies and safeguarding its economic interests.
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