EFCC Takes Action: US Dollar Transactions Banned In Nigeria, Embassies Instructed To Operate In Naira

EFCC Takes Action: US Dollar Transactions Banned In Nigeria, Embassies Instructed To Operate In Naira....KINDLY READ THE FULL STORY HERE▶

The Economic and Financial Crimes Commission (EFCC) has issued stringent directives to foreign missions operating within Nigeria, prohibiting them from engaging in transactions using foreign currencies and mandating the use of the Naira for their financial dealings. Additionally, Nigerian foreign missions abroad have been instructed to exclusively accept Naira for their financial operations.

The EFCC emphasized the necessity of this decision in combating the prevalent dollarization of the Nigerian economy and stemming the devaluation of the Naira.

In an advisory titled “EFCC Advisory to Foreign Missions against Invoicing in US Dollar,” addressed to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, the anti-graft commission expressed grave concerns regarding the practice observed in some foreign missions. These missions were found to be invoicing consular services to Nigerians and other foreign nationals within the country using the United States dollar.

Chairman of the EFCC, Ola Olukoyede, conveyed disappointment in a letter dated April 5, 2024, addressed to the Minister of Foreign Affairs, regarding the invoicing practices of consular services in Nigeria in dollars by foreign missions.

The EFCC referred to Section 20(1) of the Central Bank of Nigeria Act, 2007, which stipulates the currencies issued by the central bank as the sole legal tender in Nigeria.

The letter read, “I present to you the compliments of the Economic and Financial Crimes Commission, and wish to notify you about the commission’s observation, with dismay, regarding the unhealthy practice by some foreign missions to invoice consular services to Nigerians and other foreign nationals in the country in United States dollar ($).

“This practice is an aberration and unlawful as it conflicts with extant laws and financial regulations in Nigeria. Section 20(1) of the Central Bank of Nigeria Act, 2007 makes currencies issued by the apex bank the only legal tender in Nigeria.

“It states that ‘the currency notes issued by the Bank shall be the legal tender in Nigeria on their face value for the payment of any amount’.

“This presupposes that any transaction in currencies other than the naira anywhere in Nigeria contravenes the law and is, therefore, illegal.

“In light of the above, you may wish to convey the commission’s displeasure to all missions in Nigeria and restate Nigeria’s desire for their operations not to conflict with extant laws and regulations in the country.”

The EFCC has also announced its intention to crack down on schools, hotels, supermarkets, and other businesses in Nigeria that charge customers in dollars and other foreign currencies. Such actions are deemed unacceptable as they exert pressure on the Naira. The anti-graft agency has established a task force comprising 7,000 individuals to combat illegal foreign exchange transactions in the country, emphasizing the illegality of transactions not denominated in Naira.

Dele Oyewale, the EFCC Head of Media and Publicity, reiterated that charging and accepting foreign currencies for local transactions violates Nigerian law, emphasizing that all economic activities within Nigeria must be conducted in Naira.

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