This trend can no longer be tolerated, especially in a volatile economic environment – EFCC stops dollar transactions, asks embassies to charge in naira
The Economic and Financial Crimes Commission (EFCC) has directed foreign missions operating in Nigeria to refrain from conducting transactions in foreign currencies and instead utilize the Naira for their financial activities. This directive also extends to Nigerian foreign missions situated abroad, mandating them to embrace the Naira in their financial dealings.
The anti-corruption agency has cited the need to combat the dollarization of the Nigerian economy and prevent the depreciation of the Naira as the rationale behind this move. Consequently, the EFCC has urged the government to ensure that foreign missions in Nigeria do not charge fees for visa and other consular services in foreign currencies.
The EFCC urged the Minister of Foreign Affairs to communicate its dissatisfaction to all missions in Nigeria and reaffirm Nigeria’s expectation for their operations to comply with existing laws and regulations in the country.
In a letter addressed to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, dated April 5, 2024, titled
“EFCC Advisory to Foreign Missions against Invoicing in US Dollar,” the EFCC Chairman, Ola Olukoyede expressed dismay over the invoicing of consular services in Nigeria by foreign missions in dollars.
The EFCC cited Section 20(1) of the Central Bank of Nigeria Act, 2007, which makes currencies issued by the apex bank the only legal tender in Nigeria.
The letter read, “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 ($).
“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 emphasized that the rejection of the Naira for consular services in Nigeria by certain missions, coupled with non-compliance with foreign exchange regulations in determining service costs, not only contravenes the law but also undermines the nation’s sovereignty encapsulated in its official currency.
