House of Reps will investigate the use of the dollar and other currencies as legal tender.

According to a House of Representatives directive given to the Committee on Banking Regulation on Tuesday, the use of the US dollar and other foreign currencies as legal tender for domestic transactions in Nigeria is being investigated.

The House of Representatives further urged the Central Bank of Nigeria to address the Naira’s falling value against the dollar and other currencies.

The House urged the CBN to reform monetary policy with the goal to restore stability to the naira, address speculative behavior in the foreign exchange market, and raise the naira’s withdrawal limit in order to relieve pressure on dollars and other foreign currencies.

It also requested that the Federal Government implement structural adjustments and measures to combat corruption and boost the growth of different sectors of the nation’s economy.

According to the House, the naira has lost a greater percentage of its value relative to the dollar, falling from N778.602/$ in September 2023 to about N1000/$ today, and this is Nigeria’s first time liberalizing the foreign exchange market.

“The House is concerned about inflation and the cost of living; a depreciating naira makes imported goods more expensive, leading to higher inflation rates,” the resolution states. The most vulnerable individuals are disproportionately affected by the rising cost of living, as they struggle to purchase basic commodities that are now visible across the country.

The House is also concerned about a drop in investment; as the naira continues to fall in value and depreciate against the dollar and other foreign currencies, foreign investors may be put off