The Central Bank of
Nigeria on Tuesday raised concerns over the increasing use of foreign
currencies as a medium of exchange in the country and warned that persons
caught in the illegal act risked a six-month jail term upon conviction.
The central bank said
in a statement that some individuals and corporate bodies had been using
foreign currencies, especially the United States dollar, to price some of their
products and services, and were also using same as a medium of exchange.
The development, the
bank said, was against the provisions of the CBN Act, 2007, and asked members
of the public to report anyone caught transaction business in the country in
foreign currencies to it or the Economic and Financial Crimes Commission.
The statement issued by
the Director, Corporate Communications, CBN, Mr. Ibrahim Muazu, read, “The
attention of the bank has been drawn to the increasing use of foreign
currencies in the domestic economy as a medium of payment for goods and
services by individuals and corporates.
“It has also been
observed that some institutions price their goods and services in foreign
currencies and demand payment in foreign currencies rather than the domestic
currency (the naira), which is the legal tender in Nigeria.
“For the avoidance of
doubt, the attention of the general public is hereby drawn to the provision of
the CBN Act of 2007, which states inter-alia that ‘the currency notes issued by
the bank shall be legal tender in Nigeria…for the payment of any amount.’”
It added, “Furthermore,
the Act stipulates that any person(s) who contravenes this provision is guilty
of an offence and shall be liable on conviction to a prescribed fine or six
months imprisonment.
“This prohibition,
however, is without prejudice to foreigners, visitors and tourists who are
encouraged to continue to use their cards for payments or exchange their
foreign currencies for the local currency at any of the authorised dealers’
outposts.
“The general public is
hereby advised to report any contravention of the provision of this Act to the
Economic and Financial Crimes Commission and the CBN for appropriate action.”
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