Amidst the ongoing economic challenges facing Nigeria, the Economic and Financial Crimes Commission (EFCC) has issued a stern warning to embassies operating within the country against the unlawful practice of demanding foreign currency, particularly United States Dollars (USD), for goods and services.
In a memo dated May 5, 2024, the EFCC reiterated the illegality of such actions, emphasizing that only the Nigerian Naira is recognized as legal tender within the country.
According to excerpts from the memo, the EFCC chairman expressed deep concern over the alarming trend observed among certain foreign missions, where consular services are invoiced in USD, directly contradicting established laws and financial regulations in Nigeria.
Citing Section 20(1) of the Central Bank of Nigeria Act, 2007, which stipulates the Naira as the sole legal tender, the memo highlights the blatant violation of Nigerian laws by conducting transactions in currencies other than the Naira.
Furthermore, the EFCC emphasized the detrimental impact of this practice on Nigeria’s sovereignty, monetary policy, and economic development aspirations.
By refusing to accept the Naira and disregarding foreign exchange regulations, embassies not only flout legal frameworks but also undermine the stability of the Nigerian economy.
In response to these concerns, the EFCC urged embassies to adhere to Nigerian laws and regulations, emphasizing the importance of respecting the country’s sovereignty and economic policies.
This warning from the EFCC comes at a crucial time when Nigeria is grappling with economic challenges, and the need to safeguard the integrity of the local currency is paramount.
The memo reads in part, “I present to you the compliments of the Economic and Financial Crimes Commission, EFCC, 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 refusal by some Missions to accept the naira for consular service in Nigeria and also comply with foreign exchange regulatory regime in fixing the exchange of the cost of their services is not only illegal, but represents an affront on the Country’s sovereignty symbolized by the national currency.
“It undermines Nigeria’s monetary policy and aspiration for sustainable economic development.
The Commission’s stance underscores the importance of upholding legal and regulatory standards to ensure a stable and sustainable economic environment for all stakeholders.
For any enquiries please, email our editorial team at editor@clariform.com. If you liked this story, kindly sign up for Clariform Newsletter, a handpicked selection of stories that helps you clarify things that matter and gives you clear signals about your world, delivered directly to your inbox.
Please subscribe to our YouTube channel, and join thousands of Clariform on Facebook, Twitter and Instagram.
