The Economic and financial crimes commission (EFCC) in Nigeria has issued a stern warning to foreign missions, instructing them to use the Naira for financial transactions instead of foreign currencies.
Additionally, Nigerian foreign missions abroad have been directed to accept the Naira for their financial activities. This measure aims to tackle the dollarization of the Nigerian economy and prevent the devaluation of the Naira.
In a communication titled “EFCC Advisory to Foreign Missions against Invoicing in US Dollar,” the anti-graft commission raised concerns about foreign missions billing consular services to Nigerians and other foreign nationals in Nigeria in US dollars. The Chairman of the EFCC, Ola Olukoyede, conveyed his disappointment in a letter dated April 5, 2024, to the Minister of Foreign Affairs regarding this invoicing practice.
The EFCC cited Section 20(1) of the Central Bank of Nigeria Act, 2007, stating that the currencies issued by the central bank are 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.”
EFCC Targets Businesses Charging Customers in Foreign Currencies
- The Economic and Financial Crimes Commission (EFCC) has declared its intention to crack down on schools, hotels, supermarkets, and other establishments in Nigeria that charge clients in dollars and other foreign currencies.
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This move is aimed at alleviating the strain on the Naira.
- According to EFCC’s Head of Media and Publicity, Dele Oyewale, it is illegal for businesses to price goods and services in foreign currencies like dollars, pounds, yen, for local transactions.
According to him, the anti-graft agency has established a task force consisting of 7,000 individuals to address dollar fraudsters and other illicit foreign exchange activities in the country.
“The task force is not just to monitor naira abuse alone but for the whole economy. So, the EFCC is working to ensure that those breaking the rules find their way back to the right path so that the wrath of the law will not be on them.
“Yes, everyone knows that it is illegal to charge in other denominations apart from the naira. Whether in Chinese or American currency, any transaction that is not denominated in naira in Nigeria, the EFCC is against it.
“So, the task force is in place to check that and Nigerians should be happy about that. It is not just schools, hotels but other entities across the country that are doing this must come back to the naira as our legal tender.’’
“Naira is the symbol of our economy and everything that has to do with the economy in Nigeria must be done in naira,” Oyewale told Punch on Thursday
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