The Economic and Financial Crimes Commission (EFCC) has ordered foreign missions operating in Nigeria to refrain from conducting transactions in foreign currencies and instead utilize the Naira for their financial activities.
The EFCC also directed Nigerian foreign missions abroad to adopt the Naira for their financial operations.
This decision comes as a response to combat the dollarization of the Nigerian economy and to address the devaluation of the Naira.
This was contained in an advisory titled “EFCC Advisory to Foreign Missions against Invoicing in US Dollar,” sent to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar,.
The EFCC expressed concerns about the practice of some foreign missions invoicing consular services to Nigerians and other foreign nationals in the country using the United States dollar.
The anti-graft commission referred to Section 20(1) of the Central Bank of Nigeria Act, 2007, which designates the Naira as the only legal tender in Nigeria.
In a letter dated April 5, 2024, addressed to the Minister of Foreign Affairs, the Chairman of the EFCC, Ola Olukoyede read the Riot Act to foreign missions based in Nigeria.
The letter reads, “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.”,
The EFCC emphasized that the refusal by some missions to accept the Naira for consular services in Nigeria and comply with the foreign exchange regulatory regime is not only illegal but also undermines the country’s sovereignty symbolized by the national currency.
To address this, the EFCC urged the Minister of Foreign Affairs to convey the commission’s displeasure to all missions in Nigeria and emphasize Nigeria’s desire for their operations to align with existing laws and regulations in the country.
The letter continued, “This trend can no longer be tolerated, especially in a volatile economic environment where the country’s macroeconomic policies are constantly under attack by all manner of state and non-state actors.
“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.”
Furthermore, the EFCC announced plans to crack down on businesses charging customers in dollars and other foreign currencies.
The EFCC Head of Media and Publicity, Dele Oyewale, emphasized that it is against the law for business outfits and organizations to charge and accept foreign currencies including dollars, pounds, yen and others for such local transactions.
According to him, such actions put pressure on the Naira and are against the law, noting that a task force has been established to tackle illegal foreign exchange transactions in the country.
“The EFCC has set up a task force of 7,000 individuals to tackle dollar fraudsters and other illegal foreign exchange transactions 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.