In a compelling and urgent address on Sunday night, September 14, 2025, prominent human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, raised a clarion call to address the growing trend of dollarisation in Nigeria’s economy. Speaking during an interview on Politics Today, a widely watched programme on Channels Television, Falana expressed deep concern over the increasing use of foreign currencies, particularly the United States dollar, in domestic transactions. He argued that this practice not only undermines the value of Nigeria’s legal tender, the naira, but also exacerbates the nation’s economic crisis and fuels corruption. His remarks have sparked widespread discussion about the state of Nigeria’s economy, the role of the naira, and the need for decisive action to restore confidence in the country’s financial system.
The Dollarisation of Nigeria’s Economy
Falana’s remarks come at a time when Nigeria is grappling with significant economic challenges, including the depreciation of the naira, high inflation, and a growing reliance on foreign currency for transactions. The phenomenon of dollarisation—where foreign currencies, particularly the dollar, are used in place of the national currency for domestic transactions—has become increasingly prevalent in Nigeria. From real estate deals to school fees, business contracts, and even illicit payments such as bribes, the dollar has gained prominence, often at the expense of the naira.
This trend, Falana argued, is not only economically damaging but also illegal under Nigerian law. “As a matter of fact, it is a criminal offence to reject the naira,” he stated emphatically during the interview. He pointed out that the Central Bank of Nigeria (CBN) Act and other relevant legislation designate the naira as the sole legal tender for transactions within the country. By allowing or even encouraging the use of dollars, Nigerians are inadvertently contributing to the erosion of their own currency’s value and sovereignty.
Falana’s concerns are rooted in the broader implications of dollarisation. When a country’s economy becomes heavily reliant on a foreign currency, it loses control over its monetary policy, making it difficult to manage inflation, stabilize exchange rates, or implement fiscal policies effectively. For Nigeria, a nation already battling economic instability, the shift toward dollar-based transactions poses a significant threat to long-term financial sovereignty and economic resilience.
A Government’s Role in Undermining the Naira
One of the most striking points in Falana’s critique was his observation that even government officials have contributed to the dollarisation of the economy. He cited a recent incident in which the president announced gifts to Nigerian footballers in dollars rather than naira, a move he described as emblematic of the broader problem. “The president was announcing gifts to footballers in dollars, not naira. It has to stop. We must promote the naira, not the dollar,” Falana declared.
This example highlights a troubling disconnect between the government’s rhetoric on economic nationalism and its actions. By publicly prioritizing the dollar over the naira, government officials send a signal to the public that the national currency is less reliable or valuable. This perception undermines confidence in the naira, encouraging individuals and businesses to hoard dollars or demand payments in foreign currency as a hedge against economic uncertainty.
Falana’s critique is not limited to symbolic gestures. He pointed out that the use of dollars is pervasive in several sectors of the economy, including real estate, education, and even government contracts. For instance, it has become common for property developers and landlords to quote prices for houses and apartments in dollars, particularly in high-end markets in cities like Lagos and Abuja. Similarly, some private schools and universities demand tuition fees in dollars, a practice that excludes many Nigerians who earn and save in naira. These trends, Falana argued, deepen inequality and marginalize those who rely solely on the national currency.
The Legal Framework: Rejecting the Naira is a Crime
A central pillar of Falana’s argument is that the rejection of the naira in favor of foreign currencies is not only economically harmful but also illegal. Under Section 20 of the Central Bank of Nigeria Act, the naira is the only legal tender for all transactions within the country. The law explicitly prohibits the use of foreign currencies for domestic payments, except in cases explicitly authorized by the CBN, such as international trade or specific financial transactions.
Falana emphasized that Nigerians must be reminded of this legal obligation. “We need to stop paying fees and buying properties in dollars,” he stated, calling for stricter enforcement of existing laws. He argued that the government and regulatory bodies, particularly the CBN, have a responsibility to crack down on practices that undermine the naira. This includes imposing sanctions on businesses and individuals who demand payments in foreign currencies for domestic transactions.
The lawyer’s call for enforcement is particularly timely, given the increasing prevalence of dollar-based transactions in Nigeria’s informal economy. For example, reports have emerged of public officials and private individuals demanding bribes in dollars, a practice that Falana described as a dangerous manifestation of corruption. By linking dollarisation to corruption, he underscored the broader societal implications of this trend, including its potential to erode public trust in governance and exacerbate economic inequality.
The Economic Consequences of Dollarisation
The increasing use of dollars in Nigeria has far-reaching consequences for the economy. One of the most immediate effects is the depreciation of the naira. As demand for dollars grows, the supply of naira in circulation increases, putting downward pressure on its value. This creates a vicious cycle: as the naira weakens, more people turn to dollars, further weakening the national currency.
The depreciation of the naira has significant implications for ordinary Nigerians. Inflation, already a pressing issue, is exacerbated as the cost of imported goods and services rises. Since Nigeria relies heavily on imports for everything from food to fuel, a weaker naira translates to higher prices, reducing the purchasing power of the average citizen. For those earning in naira, particularly low- and middle-income households, this creates a significant financial burden.
Moreover, dollarisation undermines the effectiveness of monetary policy. The CBN’s ability to control money supply, set interest rates, or stabilize the exchange rate is compromised when a significant portion of transactions occurs in a foreign currency. This loss of control can lead to economic instability, making it harder for the government to address pressing issues like unemployment, poverty, and infrastructure deficits.
Falana’s warning about dollarisation also touches on the issue of financial sovereignty. By allowing the dollar to dominate domestic transactions, Nigeria risks ceding control of its economy to external forces. The value of the dollar is determined by the United States’ monetary policy, over which Nigeria has no influence. This dependence on a foreign currency leaves the country vulnerable to global economic shocks, such as fluctuations in the dollar’s value or changes in U.S. interest rates.
A Call for Stronger Regulation and Enforcement
To address the growing threat of dollarisation, Falana advocated for stronger regulation and enforcement of existing laws. He called on the CBN to take a more proactive role in monitoring and penalizing businesses and individuals who violate the legal tender laws. This could include imposing fines, revoking licenses, or pursuing legal action against those who demand payments in foreign currencies for domestic transactions.
In addition to enforcement, Falana emphasized the need for public education and awareness campaigns to promote the use of the naira. Many Nigerians may not be fully aware of the legal implications of rejecting the naira or the economic consequences of dollarisation. By engaging with communities, businesses, and institutions, the government can foster a culture of pride in the national currency and discourage the use of foreign currencies in everyday transactions.
Falana also called for policies to boost confidence in the naira. This could include measures to stabilize the exchange rate, reduce inflation, and increase foreign exchange reserves. By addressing the root causes of economic instability, the government can create an environment in which Nigerians feel confident using the naira for all transactions.
The Broader Context: Corruption and Economic Inequality
Falana’s remarks about dollarisation are not limited to economic policy; they also touch on broader issues of governance and social justice. The use of dollars in illicit transactions, such as bribes, is a stark reminder of the pervasive nature of corruption in Nigeria. By demanding payments in foreign currencies, corrupt officials and individuals are not only breaking the law but also contributing to the marginalization of ordinary Nigerians who rely on the naira.
This practice exacerbates economic inequality, as only those with access to foreign currency can participate in dollar-based transactions. For example, in the real estate sector, the quoting of property prices in dollars effectively excludes many Nigerians from the housing market, particularly young professionals and low-income earners. Similarly, the demand for school fees in dollars limits access to quality education, perpetuating a cycle of poverty and exclusion.
Falana’s critique of dollarisation is thus a call for greater accountability and transparency in both the public and private sectors. By addressing the root causes of corruption and enforcing laws that promote the use of the naira, the government can take meaningful steps toward creating a more equitable and inclusive economy.
The Path Forward: Restoring the Naira’s Value
Restoring the value and prominence of the naira will require a multifaceted approach that combines enforcement, policy reform, and public engagement. Falana’s recommendations provide a roadmap for addressing the issue of dollarisation and its associated challenges.
First, the government must prioritize the enforcement of existing laws that designate the naira as the sole legal tender. This includes cracking down on businesses, schools, and individuals who demand payments in dollars. Regulatory bodies like the CBN and the Economic and Financial Crimes Commission (EFCC) should work together to identify and penalize violators, sending a clear message that dollarisation will not be tolerated.
Second, the government should implement policies to stabilize the naira and boost confidence in the currency. This could include measures to increase foreign exchange reserves, reduce dependence on imports, and promote local production. By strengthening the economy, the government can create an environment in which the naira is seen as a reliable and valuable currency.
Third, public education campaigns are essential to changing attitudes toward the naira. The government, in collaboration with civil society organizations and the media, should launch initiatives to educate Nigerians about the importance of using the naira and the legal consequences of rejecting it. These campaigns could include advertisements, town hall meetings, and partnerships with schools and universities to promote economic literacy.
Finally, addressing the issue of corruption is critical to tackling dollarisation. The government must take decisive action to combat illicit financial flows, including bribes paid in foreign currencies. This could involve strengthening anti-corruption agencies, increasing transparency in public procurement, and ensuring that those who engage in corrupt practices face severe consequences.
The Role of Leadership in Promoting Economic Nationalism
Falana’s remarks also underscore the importance of leadership in promoting economic nationalism. By publicly prioritizing the naira and rejecting the use of dollars in domestic transactions, government officials can set an example for the rest of the country. This includes ensuring that all government contracts, payments, and announcements are made in naira, as well as encouraging private sector leaders to do the same.
The private sector also has a role to play in addressing dollarisation. Businesses, particularly in the real estate and education sectors, should be encouraged to quote prices and accept payments in naira. Industry associations and chambers of commerce can work with the government to develop guidelines and best practices for promoting the use of the naira in business transactions.
Conclusion: A Call to Action for Nigeria
Femi Falana’s impassioned plea to address the dollarisation of Nigeria’s economy is a timely and necessary intervention in the country’s ongoing economic challenges. By highlighting the legal, economic, and social implications of rejecting the naira, he has brought attention to an issue that threatens Nigeria’s financial sovereignty and exacerbates inequality and corruption.
Restoring the value of the naira will not be an easy task, but it is a critical one. It requires a concerted effort from the government, regulatory bodies, the private sector, and ordinary Nigerians to prioritize the national currency and reject the allure of the dollar. Through stronger enforcement, sound economic policies, public education, and a commitment to transparency and accountability, Nigeria can begin to reverse the trend of dollarisation and build a more resilient and inclusive economy.
As Falana aptly stated, “We must promote the naira, not the dollar.” His words serve as a rallying cry for Nigerians to take pride in their currency and work together to strengthen the nation’s economic foundation. The path forward may be challenging, but with collective action and visionary leadership, Nigeria can reclaim control of its economy and ensure that the naira remains a symbol of national pride and sovereignty.