The Central Bank of Nigeria on Tuesday
raised concerns over the increasing use of foreign currencies as a
medium of exchange in the country and warned that persons caught in the
illegal act risked a six-month jail term upon conviction.
The central bank said in a statement that
some individuals and corporate bodies had been using foreign
currencies, especially the United States dollar, to price some of their
products and services, and were also using same as a medium of exchange.
The development, the bank said, was
against the provisions of the CBN Act, 2007, and asked members of the
public to report anyone caught transaction business in the country in
foreign currencies to it or the Economic and Financial Crimes
Commission.
The statement issued by the Director,
Corporate Communications, CBN, Mr. Ibrahim Muazu, read, “The attention
of the bank 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.
“It has also been observed that some
institutions price their goods and services in foreign currencies and
demand payment in foreign currencies rather than the domestic currency
(the naira), which is the legal tender in Nigeria.
“For the avoidance of doubt, the
attention of the general public is hereby drawn to the provision 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.’”
It added, “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.
“This prohibition, however, is without
prejudice to foreigners, visitors and tourists who are encouraged to
continue to use their cards for payments or exchange their foreign
currencies for the local currency at any of the authorised dealers’
outposts.
“The general public is hereby advised to
report any contravention of the provision of this Act to the Economic
and Financial Crimes Commission and the CBN for appropriate action.”
Meanwhile, the naira fell to 204 against
the dollar at the parallel market on Tuesday as politicians were said to
be engaged in massive purchase of the greenback ahead of the
governorship and state Houses of Assembly elections on Saturday.
The naira had risen to 190 against the
United States currency on Sunday following the peaceful conduct of the
presidential election.
Foreign exchange dealers, who spoke with
our correspondent on the condition of anonymity, said the naira tumbled
on Tuesday after politicians mopped up dollars on the streets of Lagos,
Abuja, Kano and Port Harcourt.
“The naira is falling because politicians
are buying dollars massively on the street market to fund the campaigns
ahead of the governorship and states’ Houses of Assembly elections on
Saturday,” one of the dealers said.
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