CBN asked to provide details of measures used to curb dollarisation

By Abubakar Yunusa

Human rights advocate and senior lawyer, Femi Falana,has asked the Central Bank of Nigeria (CBN) to provide information on measures adopted to halt the growing practice of trading goods and services in foreign currencies in the country.

Falana made the demand in a letter dated May 24, 2022, and addressed to the CBN secretary.

The senior lawyer said the naira has continued to fall rapidly against the dollar, exchanging for over N600 in the parallel market.

He accused the apex bank of allowing the “dollarisation” of the Nigerian economy amid the party primaries.

Dollarisation refers to the usage of the U.S. dollar in addition to or instead of the domestic currency of a country.

According to Falana, politicians who are involved in buying up available dollars in the market to compromise party officers and delegates for the primary elections have worsened the depreciation of the naira.

Invoking the Freedom of Information Act (FOIA), he informed the CBN of its obligation to provide him with the requested information within seven days.

“On March 24, 2015, the governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele frowned at the growing practice of trading goods and services in foreign currencies instead of the naira in Nigeria,” the letter, seen by TheCable, reads.

“In particular, Mr. Emefiele, said that, ‘the official currency for doing business in Nigeria remains the naira. Collecting rents or school fees in dollars in Nigeria is illegal. We like to advise those involved in these practices to desist from them, because CBN would very soon begin to go after them.’

“But for reasons best known to the members of the Board of the CBN, the devaluation of the naira via dollarisation has been allowed to continue unabated.

“The financial crisis has been compounded by some politicians who are involved in buying up available dollars in the market to compromise party officers and delegates as well as administrative and judicial officers.

“Thus, due to the criminal conduct of such politicians and other interest groups involved in collecting dollars for goods and services in the country, the naira is currently exchanging for over N600 to a dollar in the so-called black market.

“In view of the foregoing, we are compelled to request for information on the measures adopted by the CBN to halt the growing practice of trading goods and services in foreign currencies instead of the naira in Nigeria.

“As this request is made under the Freedom of Information Act, 2011 you are required to furnish me with the requested information not later than seven days upon the receipt of this letter.”