President Tinubu Issues Executive Order to Halt Dollar-Based Tax and Levy Payments

President Tinubu issues executive order to halt dollar-based tax and levies on foreign currencies. The directive, which is aimed at strengthening the national currency and streamlining the fiscal system, mandates that all taxes and levies within Nigeria must be paid exclusively in the local currency, the naira.

This executive decision is part of Tinubu’s broader economic strategy to bolster the naira and stabilise the country’s financial framework. The president emphasised that allowing payments in foreign currencies undermines the national currency, creating unnecessary dependencies and financial instability. By enforcing this order, the government aims to reduce the demand for US dollars, thereby easing pressure on the naira and improving its value in the foreign exchange market.

The directive affects all government agencies, parastatals, and local government authorities, ensuring uniform compliance across the nation. In addition, it seeks to eliminate disparities and complexities in tax collection, making the process more transparent and efficient.

Economic experts have weighed in on this development, noting its potential benefits and challenges. On the one hand, the move could enhance the naira’s strength and simplify financial transactions within the country. On the other hand, some sectors that rely heavily on foreign currency transactions might face initial difficulties adapting to the new regulation.

The executive order aligns with President Tinubu’s vision for a self-reliant economy, reducing Nigeria’s over-reliance on foreign currencies. As the nation adjusts to this significant policy change, the administration is expected to monitor the implementation closely and provide necessary support to ensure a smooth transition.

In summary, President Tinubu’s executive order to stop the payment of taxes and levies in US dollars marks a significant step towards reinforcing Nigeria’s economic sovereignty and promoting the use of its local currency in all financial dealings.