The Economic and Financial Crimes Commission has issued a directive to foreign missions in Nigeria, instructing them to conduct all financial transactions in Naira, prohibiting the use of foreign currencies.
According to The PUNCH, Nigerian foreign missions abroad are also required to accept Naira for their financial operations.
This decision aims to combat the dollarization of the Nigerian economy and preserve the value of the Naira.
In an advisory addressed to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, EFCC expressed its concern and disapproval of “the practice by some foreign missions in Nigeria to invoice consular services in United States dollars.”
The advisory, titled ‘EFCC Advisory to Foreign Missions against Invoicing in US Dollar,’ highlighted the commission’s stance against this practice, emphasizing the need to invoice such services in the local currency.
In a letter dated April 5, 2024, which was addressed to the Minister of Foreign Affairs, Ministry of Foreign Affairs, the EFCC Chairman, Ola Olukoyede expressed dismay over the invoicing of consular services in Nigeria by foreign missions in dollars.
The EFCC cited Section 20(1) of the Central Bank of Nigeria Act, 2007, which makes currencies issued by the apex bank the only legal tender in Nigeria.
The letter read, “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 further emphasized that the refusal of some missions to accept the Naira for consular services in Nigeria, and their failure to comply with the foreign exchange regulatory regime in determining the cost of their services, is not only illegal but also a challenge to the country’s sovereignty, as represented by its national currency.
This situation, according to the EFCC, undermines Nigeria’s monetary policy and its goal of achieving sustainable economic development.
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.”
When contacted for comments, the spokesperson for the EFCC, Dele Oyewale, declined to provide any statements.
Meanwhile, the EFCC has resumed raids in an effort to stabilize the Naira. Operatives of the EFCC arrested some Bureau De Change operators at the popular Wuse Zone 4 market in the Federal Capital Territory, Abuja, on Tuesday.
Traders reported that some BDC operators resisted the arrest during a sting operation.
The operatives had been conducting routine raids to clean up the market of street traders and eliminate unauthorized trading.
However, this move faced resistance on Tuesday, resulting in gunshots and damage to the operatives’ vehicles.
Earlier, the commission had arrested over 35 suspected currency speculators for alleged foreign exchange fraud. Last week, it also paraded over 20 BDC operators arrested in the capital city.
