JUST IN: EFCC Bans US Dollar Transaction In Nigeria, Orders Embassies To Transact In Naira.

The Economic and Financial Crimes Commission (EFCC) in Nigeria has recently issued a directive banning U.S. dollar transactions within the country, effective from February 1, 2023. The commission has also ordered diplomatic missions and international organizations to conduct all financial transactions in Naira.

This decision comes as part of an ongoing effort by the Nigerian government to curb illegal foreign exchange transactions and boost the value of its national currency. The Central Bank of Nigeria (CBN) had previously announced plans to limit dollar transactions in a bid to reduce reliance on the U.S. dollar and promote the use of the Naira.

The EFCC’s directive applies to all foreign exchange transactions, including those related to trade, travel, personal or business transfers, and remittances. Exemptions may be granted for specific cases, such as international money transfer operators (IMTOs) and foreign investors with valid approvals from the CBN.

The Nigerian government’s move towards promoting the use of the Naira is not without precedent. In 2015, former President Muhammadu Buhari introduced a similar policy aimed at addressing Nigeria’s persistent foreign exchange challenges and stabilizing its currency market. However, this earlier attempt was met with resistance from various stakeholders due to logistical issues and lack of adequate infrastructure for processing Naira transactions.

Since then, efforts have been made to improve Nigeria’s financial infrastructure, including upgrading banking systems and expanding access to digital payment platforms like mobile money services. These improvements are expected to facilitate smoother implementation of the new directive and minimize disruptions for businesses and individuals alike.

It is important to note that this ban does not affect international transactions conducted outside of Nigeria or those involving foreign currencies held abroad by Nigerian residents or entities. It is also crucial for individuals and organizations operating in Nigeria to stay informed about any updates or clarifications regarding this policy issued by relevant authorities such as the EFCC, CBN, or Nigerian embassies abroad.