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EFCC mandates embassies in Nigeria to transact in naira

The Economic and Financial Crimes Commission (EFCC) has mandated embassies in Nigeria to start charging in naira, stopping them from transacting in foreign currencies.

EFCC issued this directive to foreign missions based in Nigeria in a letter dated April 5, 2024 which was addressed to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, titled: โ€œEFCC Advisory to Foreign Missions against Invoicing in US Dollar.โ€

The commissionโ€™s chairman, Ola Olukoyede, in the circular expressed his displeasure over the embassies in the country carrying out their financial transactions in foreign currencies.

EFCC stated that it decided to take this step so as to continue its fight against the dollarisation of the Nigerian economy and the degradation of the naira.

โ€œI present to you the compliments of the Economic and Financial Crimes Commission, and wish to notify you about the commissionโ€™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 ($),โ€ the communique read.

โ€œThis 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.

โ€œIt states that โ€˜the currency notes issued by the Bank shall be the legal tender in Nigeria on their face value for the payment of any amountโ€™.

โ€œThis presupposes that any transaction in currencies other than the naira anywhere in Nigeria contravenes the law and is, therefore, illegal.โ€

The anti-graft commission said this trend can no longer be tolerated, especially in a volatile economic environment where Nigeriaโ€™s macroeconomic policies are constantly under attack by all manner of state and non-state actors.

โ€œIn light of the above, you may wish to convey the commissionโ€™s displeasure to all missions in Nigeria and restate Nigeriaโ€™s desire for their operations not to conflict with extant laws and regulations in the country,โ€ EFCC added.