The Central Bank of Nigeria (CBN) has raised concerns about the increasing trend of illicit transactions involving the Naira, urging immediate intervention to address the issue. CBN Governor, Olayemi Cardoso, highlighted these concerns during the Bank’s Security Workshop held in Abuja, emphasizing the need for collective action to protect the integrity of the national currency.
Findings from Mystery Shopping Exercises
Recent undercover investigations conducted by the CBN in major commercial hubs—Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan—revealed alarming practices of Naira commoditization and abuse. One significant concern is the illegal premium charged on banknotes, ranging from 20% to 40% per transaction. For instance, in a recent operation, banknotes totaling ₦2.3 million were acquired with a total payment, including premiums, of ₦3.2 million. This practice not only distorts the value of the Naira but also undermines public confidence in the financial system.
Public Display and Abuse of the Naira
Governor Cardoso expressed concern over the frequent abuse of the Naira, especially on social media platforms, where individuals are seen mishandling, spraying, and stepping on banknotes at social events. He emphasized that such blatant disregard for the nation’s legal tender weakens the Naira's value and erodes respect for Nigeria's national identity. Cardoso stated, "When we talk about credibility and trust, we don’t build it this way."
Call for Enforcement and Collaboration
The CBN Governor called for strict measures to deter these practices, emphasizing the role of law enforcement agencies in identifying and prosecuting individuals engaged in illicit currency dealings. He stressed that a strong message must be sent to the public that such actions will not be tolerated, fostering a sense of responsibility and respect towards the currency.
Broader Security Challenges
Beyond cash-related concerns, Cardoso outlined broader security challenges affecting the CBN’s operations, including:
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Limited Availability of Armed Security Personnel: Especially in high-risk areas, hindering effective currency management operations.
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Delays in Security Clearances: Obstacles in obtaining necessary approvals for operations such as currency evacuations, affecting operational efficiency.
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Interference in Routine Approvals: Unwarranted interference affecting the smooth functioning of currency management processes.
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Uncoordinated Cash-in-Transit Services: Leading to unwarranted arrests and detentions, highlighting the need for standardized protocols.
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Illicit Currency Trading Activities: The necessity for stronger collaboration to combat unauthorized currency trading.
Addressing these challenges requires a more structured approach, improved security protocols, and enhanced cooperation between regulatory agencies and law enforcement bodies. Cardoso emphasized, "We all have to work together and take pride in restoring confidence in the financial system."
National Security Adviser’s Remarks
National Security Adviser, Mallam Nuhu Ribadu, underscored the need for law enforcement agencies to take stronger action against offenders. He highlighted that impunity contributes to the nation's problems and stressed the importance of holding individuals accountable for their actions. Ribadu also called for stricter regulations and oversight in the movement of cash within the country to ensure proper accountability.
Conclusion
The CBN's alarm over illicit Naira transactions highlights the urgent need for comprehensive measures to protect the integrity of Nigeria's currency. Collaboration among regulatory bodies, law enforcement agencies, and the public is essential to restore confidence in the financial system and uphold the nation's economic stability.
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