Bayo Onanuga, the Special Adviser to the President on Information and Strategy, made this announcement during a briefing at the state house in Abuja. He indicated that this initiative is part of the economic stabilization bill that the President will present to the National Assembly (NASS).
Onanuga explained that this proposal aims to prioritize the use of local currency in Nigeria and alleviate pressure on the foreign exchange market.
He remarked, “The second aspect pertains to the operational regulations governing NIMASA and NPA. The amendments included in the economic stabilization bill stipulate that all fees, charges, levies, fines, and other revenues owed to these agencies will now be payable in Naira at the applicable exchange rate.”
“Previously, these agencies charged in Dollars, but they will now collect payments in Naira. This administration is keen on emphasizing our national currency rather than allowing our economy to be dominated by the dollar.”
This proposal underscores the federal government’s commitment to reducing the Nigerian economy's dependence on the fluctuations of the foreign exchange market, particularly concerning the Naira's exchange rate against the USD. Additionally, it aims to decrease the demand for foreign currency among stakeholders in this sector, thereby alleviating pressure on Nigeria's forex market.
One comparable initiative to this proposal is the Federal Executive Council's (FEC) decision to permit the Nigerian National Petroleum Company (NNPC) LTD to sell crude oil to the Dangote refinery and other domestic refineries in Naira instead of USD, which is typically used for international commodity transactions like crude oil.
Recently, the Naira has experienced significant volatility and depreciation, particularly over the past 14 months, following the unification of the foreign exchange market and an implicit devaluation. After the forex market was unified in June, the exchange rate stabilized at approximately N750/$, but by the end of 2023, it had risen to N907/$.
In 2024, the Naira has exhibited extreme fluctuations, initially ranking as the worst-performing currency between February and March, before rebounding to become the best-performing currency globally in April. However, this momentum has diminished, and the Naira has been steadily depreciating, currently hovering around N1,600/$.