THE Economic and Financial Crimes Commission (EFCC) has barred foreign missions based in Nigeria from transacting in foreign currencies, insisting that all their transactions must be in Naira.
The Commission also mandated Nigerian foreign missions domiciled abroad to accept Naira in their financial businesses.
This, it explained, was aimed at tackling the dollarisation of the Nigerian economy and the degradation of the Naira
EFCC, in an advisory to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, titled, ‘EFCC advisory to foreign missions against invoicing in US Dollar,’ expressed reservations and displeasure “regarding the unhealthy practice by some foreign missions to invoice consular services to Nigerians and other foreign nationals in the country in United States (US) dollar(s).”
In a letter dated April 5, this year, addressed to the minister, the EFCC Chairman, Ola Olukoyede, expressed dismay over the invoicing of consular services in Nigeria by foreign missions in dollars, citing Section 20(1) of the Central Bank of Nigeria Act, 2007, which makes currencies issued by the apex bank the only legal tender in the country.
The letter read in parts: “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 Commission stated that the refusal by some missions to accept the Naira for consular service in Nigeria and also comply with the foreign exchange regulatory regime in fixing the exchange of the cost of their services is not only illegal, but also represents an affront to Nigeria’s sovereignty symbolised by the national currency, a situation, it added, undermines the country’s monetary policy and aspiration for sustainable economic development.
“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.”
