Dollarisation of economy ‘illegal’ says CBN governor


Central Bank of Nigeria (CBN) governor, Godwin Emefiele has reiterated that the naira remains the country’s currency of transaction.

Speaking at the MPC meeting on Tuesday, he stated that conducting transactions in dollars rather than in naira is illegal and the issue will be dealt with.

“The incidence of some partial dollarisation of the economy – we will take actions to prevent that. The currency for doing business in Nigeria remains the naira. We will be looking at areas where people are making demands for foreign currency,” Emefiele said.


“People who are landlords that are asking for rent in dollars, schools that are asking for school fees in dollars or transacting business in dollars – it’s illegal in Nigeria, and we would like to advise those who are involved in these practices to please desist because CBN will, in due course, come after them.”

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Nigeria’s Monetary Policy Committee (MPC) had voted to retain the Monetary Policy Rate at 13 per cent.

The committee also indicated that it would retain the CRR on private and public sector deposits at 20 per cent and 75 per cent respectively. It retained the liquidity ratio at 30 per cent as well.

“The committee observed that its previous decisions needed time for their effects to fully permeate the economy and therefore voted to maintain the current position,” said Emefiele.

He also acknowledged that foreign and domestic investors are looking at the currency and said that he is optimistic that after the election, confidence will improve.

“We had said it before – elections will come, elections will go, Nigeria will remain the same and business will continue as usual,” Emefiele added.

“I am optimistic that confidence will grow after the election and business will resume. As we continue [to] take a view on the crude prices, I am optimistic that the economy will remain resilient and will be in the upward direction.”