CBN'S BAN ON DOLLAR FOR TRANSACTIONS: TROUBLE FOR ATIKU'S ABTI AMERICAN UNIVERSITY, BRITISH INTERNATIONAL SCHOOL, LEKKI BRITISH INTERNATIONAL SCHOOL AND LANDLORDS IN IKOYI, LEKKI

The Apex Bank, Central Bank of Nigeria on Tuesday issued a warning to schools, landlords and other business enterprises against demanding foreign currencies for the settlement of transactions carried out within the country. CBN Governor, Mr. Godwin Emefiele who handed down the warning while briefing journalists in Abuja said the official currency of the country remains the naira and warned that the central bank would no longer tolerate what he described as the “dollarization” of the economy.

The CBN boss said if the development remained unchanged, the bank would be forced to go after organisations that were in the habit of demanding foreign currencies for the settlement of transactions maintaining the Apex bank had identified the practice as one of the reasons for the high pressure on the naira.

"From our side at the CBN, we are going to be taking certain actions that will nip some of the demands that are not useful in the bud. You have heard the incidence of partial dollarization of the economy. We will take actions to prevent that; the currency for doing business in Nigeria remains the naira and we will be looking at areas where people are making demands for foreign currencies."

“People who are landlords that are asking for rents in dollars; schools are asking for school fees in dollars or transacting business in dollars. This is illegal in Nigeria and we will like to advise those who are involved in this practice to desist from it because the CBN will in due course come after them.”

This may not augur well with some establishment that render their services in exchange for foreign currencies. For instance ABTI American University, Yola owned by former Nigeria’s Vice President, Alhaji Atiku Abubakar and his foreign partners, the University parades purely American structure and curriculum. It is described as second most expensive university in Nigeria because of the high fees which is paid in foreign currencies. Student pay as much as N1,378,500 breakdown of which is tuition: $6,6000 (N990,000), feeding $1,900 (N285,000) and accommodation $1,700 (N285,000).

The British International School, Oniru Private Estate. Victoria Island. Lagos. also falls into the category of establishment where foreign currencies are accepted for service rendered, breakdown of which are - Tuition and Fees: (Boarding Annual) $26,750+N200, 000 Additional Charges. Tuition and Fees (Day) $15,250

It is the same story at Lekki British International School Lekki Phase 1, Lagos. The school charges their fees in foreign currency. Tuition and Fees;(Boarding Annual) $19,500+N200, 000 development fee. Tuition and Fees: (Day) $12,000+N200, 00 Development fee

Landlords in some exclusive neighbourhoods in Lagos, especially in Lekki, Ikoyi and Victoria Island, have reportedly started demanding for dollar rental payment, this development is blamed on the continued weakening value of the naira that has led to its devaluation.