According to a statement by Skye Bank Plc., The Central Bank of Nigeria (CBN) recently issued a directive to all Nigerian Banks in April 2015, stating that “it is illegal to price or denominate the cost of any product or service (visible or invisible) in any foreign currency in Nigeria. No business offer or acceptance should be consummated in Nigeria in any currency other than the Naira.”
Therefore, the payment of domestic transactions with foreign currencies on behalf of customers, as well as the use of domiciliary accounts for making payments for visible and invisible transactions such as fees, charges, licenses etc. originating and consummated in Nigeria have been halted.
The directive was released on 17th April, 2015 and is in line with the following provisions of the CBN Act:
- Section 15 of the CBN Act 2007 which states that the unit of currency in Nigeria shall be the Naira.
- Section 20 (1) of the same Act which provides that the currency notes issued by the Bank shall be legal tender in Nigeria at their face value for the payment of any amount
- Section 20 (5) which provides that a person who refuses to accept the Naira as a means of payment is guilty of an offence and liable on conviction to a fine or 6 months imprisonment.
All foreigners and tourists must henceforth use payment cards to purchase local goods and services, or exchange foreign currency for the Naira at any authorised dealer outpost.
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This article was first published on 6th May 2015
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