All foreign missions operating in Nigeria have received a strict mandate from the Economic and Financial Crimes Commission (EFCC) requiring them to utilize the Nigerian naira exclusively for all financial transactions. The goal of this policy change is to strengthen the national currency’s sovereignty and stop the Nigerian economy from being increasingly dollarized. Parallel to this, Nigerian embassies abroad are now obligated to carry out their financial operations in naira, which is indicative of a comprehensive plan to support the currency’s value and use in both local and international markets.
The decision was sent to Minister of Foreign Affairs Yusuf Tuggar through a piece of advice, highlighting the EFCC’s concerns on the continued conduct of foreign missions. It has been observed that these missions bill consular services in US dollars instead of naira, which is the sole accepted legal tender as per the Central Bank of Nigeria Act, 2007. The EFCC is eager to strictly enforce the act’s Section 20(1), which states that only money issued by the Central Bank may be used as legal tender in Nigeria.
In a letter dated April 5, 2024, Ola Olukoyede, the Chairman of the EFCC, voiced grave concern to the Ministry of Foreign Affairs. He brought to light how the dollarization of these services threatens the nation’s monetary policy and wider economic goals in addition to breaking national financial regulations. “In a volatile economy where the nation’s macroeconomic policies are continuously under attack from a variety of state and non-state players, this trend can no longer be accepted, Olukoyede stated.”
The Central Bank of Nigeria is implementing larger monetary policy measures that are in line with the EFCC’s directive. These reforms are intended to stabilize the country’s economy and strengthen the naira. The EFCC intends to lessen the negative consequences of dollarization, which include deteriorating the efficiency of monetary policy and escalating inflationary pressures, by mandating the use of local currency.
The EFCC’s action is also perceived as an attempt to protect Nigeria’s economic sovereignty by making sure that all financial transactions within its borders are carried out in the country’s currency. Reliance on the US dollar and other foreign currencies, which can result in serious economic and financial vulnerabilities, is what this policy aims to reduce.
The warning from the EFCC to foreign missions comes at a crucial moment when there have been notable shifts in Nigeria’s currency, which have an impact on the country’s overall economic situation. The EFCC wants to promote a more stable and predictable economy that is favorable to sustainable growth and development, which is why it is insistent on naira transactions.
In order to prevent any legal and diplomatic repercussions, foreign missions are now asked to coordinate their operations with these laws. As part of a larger plan to guarantee economic stability and progress, Nigeria’s commitment to upholding its financial laws and regulations is emphasized by the EFCC’s guidance.
