Afe Babalola University Receives Fees in Foreign Currencies Against CBN Directive Prioritizing Naira

In February, 2024, the Central Bank of Nigeria (CBN) released a memo strictly condemning the activities of individuals and corporates in Nigeria trading in foreign currencies. 

 

According to the piece signed by its Director of Corporate Communications, Ibrahim Mua’zu, CBN reinstated that the Nigerian naira, referred to the domestic currency is the sole legal tender in the country.

The apex bank directed all corporations and individuals to trade accordingly with the naira within the country. It also warned of defaulters to face the wrath of the law.

 

The piece partly quoted, “The attention of the Bank has been drawn to the increasing use of foreign currencies in the domestic economy as a medium of payment for goods and services by individuals and corporates.

 

“It has also been observed that some institutions price their goods and services in foreign currencies and demand payments in foreign currencies rather than the domestic currency (the Naira), which is the legal tender in Nigeria.

 

“For the avoidance of doubt, the attention of the general public is hereby drawn to the provisions of the CBN Act of 2007, which states inter-alia that “the currency notes issued by the Bank shall be legal tender in Nigeria…for the payment of any amount”.

 

“Furthermore, the Act stipulates that any person(s) who contravenes this provision is guilty of an offence and shall be liable on conviction to a prescribed fine or six months imprisonment.”

 

The piece also contained order, compelling even foreigners to exchange their foreign currencies for the Nigerian naira before trading within the country. “This prohibition, however, is without prejudice to foreigners, visitors and tourists who are encouraged to continue to use their cards for payments or exchange their foreign currency for local currency at any of the authorized dealers’ outpost,” the piece quoted.

 

Despite this, checks by our reporters found that Afe Babalola University (ABUAD) asks students to pay their tuition fees in foreign currencies. According to the University documents, it receives tuition payments not only in the dollar but also in other foreign currencies.

As part of its advertised offers to keep parents paying in foreign currencies, the University gives “a 10% tuition reduction to parents who pay annual tuition fees in US dollars into the university’s domiciliary account. Foreign students admitted after 2021 also receive a 5% tuition reduction if they pay in US dollars.”

 

Afe Babalola University was founded a Senior Advocate of Nigeria (SAN) popularly known as Are Afe Babalola.

 

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