The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the National Security Adviser (NSA), Nuhu Ribadu, have sounded a strong warning to Nigerians over the growing issue of Naira abuse and illegal commoditization. The warning came during a CBN security workshop in Abuja, where security and law enforcement agencies met to discuss strategies to curb these violations.
Both officials emphasized that the disrespect and illegal trading of the Naira are serious offenses that weaken the economy, threaten the country’s financial stability, and must be dealt with decisively.
Disturbing Findings: The Hidden Market for Naira Notes
Governor Olayemi Cardoso revealed shocking findings from recent investigations carried out in several major cities, including Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan. The investigations uncovered widespread cases of Naira commoditization, where individuals and businesses sell Naira notes at illegal premiums.
Cardoso stated:
“A critical concern that arises from these transactions is an illegal act and a premium charged on banknotes ranging from 20% to 40% per transaction.”
The findings showed that N2.3 million in banknotes was purchased for a total of N3.2 million, including illegal charges. This means that individuals desperate for cash are forced to pay extra money just to access their own country’s legal tender, a practice that further destabilizes the value of the Naira.
How Naira Abuse Harms the Economy
Beyond the illegal sale of cash, the CBN Governor stressed that widespread abuse of the Naira contributes to economic instability.
“The blatant disregard for our nation’s legal tender not only weakens the value of the Naira but also erodes respect for our national identity. If we disrespect it this way and expect a strong Naira, we are deceiving ourselves,” Cardoso warned.
He emphasized that the devaluation of the Naira is not just caused by international market forces but also by internal actions such as hoarding, illegal trading, and abuse of the currency at events, parties, and in commercial transactions.
To address this, strict penalties will be enforced against offenders to preserve the integrity of Nigeria’s financial system.
NSA Ribadu: “Stronger Enforcement is Needed”
Supporting the CBN’s position, National Security Adviser Nuhu Ribadu called for stricter enforcement of laws prohibiting Naira abuse. He noted that Nigeria’s law enforcement agencies must step up their efforts to arrest and prosecute those found guilty of these violations.
“From time to time, when law enforcement acts, I think they should do more. Bringing people to justice, no matter how bitter, is necessary,” Ribadu declared.
He further pointed out that impunity remains a major issue in Nigeria’s governance system.
“Impunity is the mother of all the problems we have. Nobody is punished for bad behavior, and they don’t even see it as a bad thing until they are held accountable,” he stated.
His remarks highlight the urgent need for stricter law enforcement measures, including surveillance, investigation, and prosecution of individuals and businesses involved in currency abuse and illegal financial transactions.
What the Law Says About Naira Abuse
Under Nigeria’s financial laws, the abuse, spraying, selling, and mutilation of Naira notes is a criminal offense. The CBN Act of 2007 clearly prohibits the hawking, selling, and trading of the Naira in any form.
Furthermore, Section 21 of the Act states that:
Any person who sprays, mutilates, or hawks Naira notes is guilty of an offense and shall face legal consequences.
Convicted individuals may be fined, imprisoned, or both, depending on the severity of the offense.
A notable example of enforcement was seen in April 2024, when popular cross-dresser Idris Okuneye (Bobrisky) was sentenced to six months in prison for Naira abuse. This case served as a warning to others engaging in similar practices.
With the latest warnings from the CBN and NSA, it is expected that more arrests, fines, and prison sentences will follow to deter future violations.
What Nigerians Must Do to Avoid Trouble
To avoid facing legal action, Nigerians must adhere strictly to the laws governing the handling of the Naira. Here are a few key steps to stay compliant:
- Do not spray, deface, or mutilate the Naira at parties or social events.
- Do not engage in the illegal buying or selling of banknotes.
- Always deposit damaged Naira notes at banks instead of destroying them.
- Report any cases of illegal currency dealings to law enforcement authorities.
By following these guidelines, Nigerians can help protect the value of their currency and avoid legal trouble.
The Road Ahead: Strengthening Nigeria’s Financial System
The CBN and law enforcement agencies are now working together to restore discipline and integrity to Nigeria’s financial system. While it is important for individuals to respect the Naira, the government must also ensure fair access to cash, reduce inflation, and stabilize the currency.
As the crackdown on Naira abuse intensifies, Nigerians should expect more arrests and legal actions against offenders. In the end, a stronger, more respected Naira will benefit everyone by improving the economy, stabilizing inflation, and enhancing national pride.
