CBN faults payment for services in dollars

The Central Bank of Nigeria (CBN) has condemned rising cases of currency substitution and dollarisation of the economy.

CBN Banking Supervision Director Mrs. Tokunbo Martins said the Naira remain the only legal tender in this country.

“Please be reminded that Section 15 of the CBN Act 2007 provides that the unit of currency in Nigeria shall be the Naira.  Section 20 (1) of the same Act 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 and Section 20 (5) further 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 six months imprisonment,” she said in a statement.

Martins warned the general public that it is illegal to price or denominate the cost of any product or service (Visible or Invisible) in any foreign currency in Nigeria and no business offer or acceptance should be consummated in Nigeria in any currency other than the Naira.

She advised deposit money banks operating in the country to desist from the collection of foreign currencies for payment of domestic transactions on behalf of their customers and the use of their customers’ domiciliary accounts for making payments for visible and invisible transactions like fees, charges, licenses among others originating and consummated in Nigeria.

This however is without prejudice to foreigners, visitors and tourists who are encouraged to use their cards for payments or exchange their foreign currency for local currency at any of the authorised dealers’ outpost including hotels.

“Appropriate sanctions shall be meted on any bank that breaches this regulation. Please note that this circular supersedes the provisions of Memorandum 16 of the Central Bank of Nigeria Foreign Exchange Manual and Paragraph (XI) Section 4.2.1 of the Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2014/2015,” she said