Falana SAN Writes Central Bank, Demands Measures Taken by Apex Bank To Stop The Use Of Foreign Currencies In Local Transactions

*Blames ‘dollarization’ For Continued Devaluation of the Naira
*Describes Use of Dollars By Politicians As Criminal Conduct And Requests For CBN Feedback in 7 Days
Renowned Senior Advocate of Nigeria and Human Rights Activist, Femi Falana has written to the Central Bank of Nigeria requesting for measures taken by the apex financial authority to checkmate the growing usage of dollars for local transactions within Nigeria.
In a letter dated 24th of May, 2022 and addressed to the Secretary of the Bank, Falana recalled a statement by the Central Bank Governor, Godwin Emefiele in 2015 where he insisted that the Naira remains the official legal tender in Nigeria and frowned against the usage of dollars or other foreign currencies within the country.
Recalling the statement, Falana said: “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. 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.”
In his letter titled, “REQUEST FOR INFORMATION ON MEASURES ADOPTED BY CBN TO STOP TRADING GOODS AND SERVICES IN FOREIGN CURRENCIES IN NIGERIA”, Falana wondered why despite the 2015 declaration, the board of the bank has allowed the use of foreign currencies especially the dollar as legal tender within Nigeria. He equally lamented that the crisis has been worsened by the growing trend of politicians using buying up available dollars in banks for vote buying purposes. According to him, this trend which he refers to as “dollarization” and a criminal conduct is responsible for the dwindling fortunes of the Naira value.
“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.” He wrote.
He further noted that the present situation informed his decision to write the bank to request information on steps it has taken the issue. According to him, the request is made pursuant to the Freedom of Information Act (2011) and the bank is obligated to respond to him in 7 days from receipt of his letter.
“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 7 days upon the receipt of this letter” he concluded.
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