The All Progressives Congress (APC) and the Labour Party (LP) have both expressed support for the ongoing legislative effort to ban the use of foreign currencies for local transactions in Nigeria.

The bill, titled ‘A Bill for an Act to Alter the Central Bank of Nigeria Act 2007, No. 7, to Prohibit the Use of Foreign Currencies for Remuneration and Other Related Matters,’ passed its first reading in the Senate two weeks ago.

The bill, which aims to ensure that all payments, including salaries, are made in naira, seeks to reduce the influence of foreign currencies in Nigeria’s economy and boost confidence in the local currency.

It was introduced by Senator Ned Nwoko, the Chairman of the Senate Committee on Reparations and Repatriation.

Nwoko expressed concerns that the pervasive use of foreign currencies in domestic transactions has contributed to the depreciation of the naira and hindered Nigeria’s economic progress.

The National Publicity Secretary of LP, Obiora Ifoh, voiced strong support for the bill, criticizing the growing ‘dollarisation’ of the economy.

Ifoh pointed out that the use of foreign currencies by wealthy individuals and companies was damaging Nigeria’s economic stability.

He noted that it was unnecessary for businesses to pay salaries in dollars, as the national budget is conducted in naira.

He also emphasized that the Naira should be restored to its rightful place as the country’s primary currency, highlighting the example of China, where all transactions are conducted in the yuan.

Although Ifoh acknowledged that foreign currencies cannot be entirely eliminated, he advocated for a law that would penalize individuals and businesses found hoarding or transacting in foreign currencies.

He argued that such a law would strengthen the naira and help reduce the dominance of foreign currencies.

The APC also supported the proposed legislation, with the party’s National Publicity Director, Bala Ibrahim, expressing his approval.

Ibrahim argued that using foreign currencies for local transactions diminishes the value of the naira and undermines its status.

He stated that while people may still carry foreign currencies for personal use, the move would help restore the naira’s prestige and stability in the long run.

He also emphasized that the law should be implemented thoroughly to ensure its success.

Dr. Yemi Farounbi, a former Nigerian ambassador to the Philippines, has called on President Bola Tinubu to take a more measured approach in appointing ambassadors, aiming to reduce the cost of governance.

In a recent interview, Farounbi emphasized the importance of moderation in the number of diplomatic appointments as part of a broader strategy to tackle Nigeria’s financial challenges.

Farounbi also advocated for the adoption of “smart embassies”—a concept that involves reducing the size of diplomatic missions, streamlining personnel, and cutting down on the overhead costs associated with embassies.

This strategy would help minimize expenses related to accommodation, office spaces, and support staff for diplomatic operations.

Nigeria currently operates 109 diplomatic missions worldwide, including 76 embassies, 22 high commissions, and 11 consulates.

Despite President Tinubu’s recall of both career and non-career ambassadors in September 2023, replacements have yet to be made more than 15 months later.

A report from PUNCH revealed that the delay is due to insufficient funds to cover the arrears of foreign service officials, address overhead backlogs, replace aging vehicles, and refurbish embassy buildings.

Sources indicate that nearly $1 billion is needed to resolve these issues.

Farounbi pointed out the inefficiencies caused by the lack of appointed ambassadors, noting that some missions have faced difficulties with overdue rent, utility bills, and even office space shortages.

This, he said, leads to a hampered performance of Nigeria’s diplomatic efforts abroad.

He proposed the idea of smart embassies, which operate with smaller teams and more efficient structures, saying, “Instead of an embassy with 30, 50, or 70 staff members, we could function with fewer than 10, which would allow us to manage costs better.”

Additionally, Farounbi suggested that Nigeria should consider permanent office spaces for embassies rather than renting and proposed appointing a single ambassador to oversee multiple countries where possible.

He cited the example of the Philippines ambassador to Nigeria, who also oversees 17 other countries, and recommended a similar model for Nigeria’s missions to reduce expenses.

Farounbi concluded by advising the government to prioritize embassies in countries that are critical to Nigeria’s national interests, stressing the need to eliminate unnecessary political appointments and streamline diplomatic efforts.

The Federal Government of Nigeria, through its Ministry of Justice, has disbursed around N1.1 billion in professional fees to Chief Afe Babalola, SAN, Wole Olanipekun, SAN, and 23 other legal firms over the past three years.

This information was uncovered through an analysis conducted by GovSpend, a civic tech platform that tracks the government’s financial spending.

Legal services encompass a wide range of activities such as providing legal counsel, preparing legal documents, representing clients in court, and offering services in various transactional activities.

This can include evaluating legal risks in real estate or business transactions, negotiating deals, ensuring compliance with regulations, and managing legal risks.

In July 2024, Babalola, Olanipekun, and Dr. Alex Izinyon, SAN, collectively received a sum of N482.7 million from the Ministry of Justice.

Babalola was paid N372.9 million on July 23 for his representation of the Federal Government in a specific case (FHC/ABJ/SC/8962/2023), while Olanipekun and Izinyon received payments of N103.6 million and N6.2 million, respectively, for similar legal services provided at different times.

Olanipekun’s payment was processed on July 26, and Izinyon received his fee three days later.

An examination of the Ministry of Justice’s payment records revealed that in 2022, 17 lawyers were paid a total of N359.7 million for their professional services, and in 2021, four lawyers received N319.3 million.

Among the recipients in 2022 were firms such as Savannah Law Chambers (N17.4 million), Lex Habitae (N21.8 million), and Rashida Mohammed & Co in Sokoto (N17.4 million), as well as Abdullahi Haruna & Co (N17.4 million). LDS Legal was paid N70.9 million, while King’s Chambers and Iwuanyanwu & Co received N15.7 million each.

Other law firms that received payments included Justice Solicitors & Attorneys (N15.7 million), Pelican Legal (N15.7 million), and Aderemi Olatubora & Co (N17.4 million).

Additionally, Gboyega Oyewole of Lords and Temple Attorneys was paid N5.4 million, and Savannah Law Chambers received another N29 million.

Lawyers such as Hanafi Mumini Ishola of Hanafi & Associates and Madyan Legal Consult were also among the beneficiaries, receiving N20.7 million and N24.8 million, respectively.

In 2021, payments included N174 million to Chikwendu Madumere, N21.8 million to LDS Legal, N21.8 million to Olowolafe & Co, and N100.5 million to Sulaiman Salihu & Co, which was paid in two parts.

As part of their professional fees, Chief Afe Babalola paid a 7.5% Value Added Tax amounting to N31 million to the Federal Inland Revenue Service, while Wole Olanipekun paid N8.6 million in VAT.

Additionally, both lawyers paid a 10% withholding tax of N41.4 million and N11.5 million, respectively, to the Ministry of Justice.

Former Edo State Governor, Senator Adams Oshiomhole has stated that the state has moved away from the rhetoric of his successor, Governor Godwin Obaseki, and is now focused on action under the leadership of Senator Monday Okpebholo.

Oshiomhole praised Okpebholo for taking swift steps in revitalizing the state’s infrastructure, mentioning that contractors have been mobilized to the sites and surveys are underway to ensure immediate commencement of key projects.

He emphasized that Edo now has a “new sheriff” in town, working hard to address the state’s challenges.

According to Oshiomhole, the people are seeing tangible changes, noting that the state is shifting from years of speeches and memorandums to real, visible action.

He commended Okpebholo for his inclusive leadership style, bringing people together to make collective decisions for the state’s progress.

Oshiomhole expressed confidence in Okpebholo’s leadership, claiming that the people of Edo are satisfied with the direction the state is heading.

He stated that the state is in “safe hands” under the leadership of the new governor.

In his remarks, Okpebholo assured the people of Edo that 2025 would bring further progress, highlighting that the new budget and the appointment of competent individuals in key sectors would drive growth and improvements in critical areas of the economy.