The Economic and Financial Crimes Commission (EFCC), at the weekend, cautioned foreign missions operating in Nigeria against carrying out their transactions in foreign currencies, especially the United States (U.S.) Dollar and urged them to use the Naira for their financial dealings.
It ordered Nigerian foreign missions abroad to accept the Naira for their financial transactions, insisting that the decision became necessary to combat the dollarization of the Nigerian economy and further devaluation of the Naira.
In a memorandum titled: EFCC Advisory to Foreign Missions Against Invoicing in US Dollar, sent to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, the anti-graft commission expressed its concerns and dissatisfaction with the practice of some foreign missions invoicing consular services to Nigerians and other foreign nationals in the country using the United States dollar.
In a letter dated April 5, 2024, addressed to the Minister of Foreign Affairs, Chairman of EFCC, Ola Olukoyede, had expressed disappointment over the invoicing of consular services in Nigeria in dollars by foreign missions.
The commission referred to Section 20(1) of the Central Bank of Nigeria (CBN) Act 2007, which designates the currencies issued by the apex bank as the only legal tender in Nigeria.
“I present to you the compliments of the Economic and Financial Crimes Commission and wish to notify you of 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 ($).
“The 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 CBN 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.
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“In light of the above, you may wish to convey the commission’s displeasure to all missions in Nigeria and restate the desire for their operations not to conflict with extant laws and regulations in the country,” the letter reads.
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The EFCC recently announced its plan to clamp down on schools, hotels, supermarkets and other business outfits in Nigeria that charge customers in dollars and other foreign currencies, saying such action is unacceptable as it puts unnecessary pressure on the Naira.
EFCC’s Head of Media and Publicity, Dele Oyewale, stressed that it was unlawful for business outfits and organizations to charge and accept foreign currencies including dollars, pounds, yen and others for local transactions.
He disclosed that the commission 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 fall on them.
“Yes, everyone knows that it is illegal to charge in other denominations other than the Naira. Whether in Chinese or American currency, the EFCC is against any transactions not denominated in Naira in Nigeria.
“So, the task force is in place to check that and Nigerians should be happy about this. It is not only schools and hotels but also other entities across the country that are doing this must come back to the Naira as our legal tender. The Naira is the symbol of our economy and everything that has to do with the Nigerian economy must be done in local currency,” Oyewale said.
