CBN Raises Alarm Over Naira Abuse
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has expressed serious concern over illegal transactions involving banknotes, demanding immediate intervention from security and law enforcement agencies.
CBN Governor, Mr. Olayemi Cardoso, speaking at a security workshop in Abuja, revealed that recent mystery shopping exercises in major commercial hubs uncovered a disturbing trend of Naira commoditization and abuse.
“Recent mystery shopping exercises conducted in major commercial hubs such as Abuja, Asaba, Awka, Benin, Ilorin, Kano and Ibadan have revealed a disturbing trend of illicit transactions involving banknotes which demands urgent intervention,” Cardoso said.
He described the situation as a “commoditization of the Naira,” lamenting the widespread abuse that requires immediate attention from regulatory bodies and law enforcement agencies.
“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,” Cardoso stated. “The gravity of this situation is further highlighted by a recent exercise where banknotes amounting to 2.3 million Naira were acquired with a total payment including premiums of 3.2 million Naira.”
Cardoso also addressed the disrespectful treatment of the Naira on social media. “The abuse of the Naira is further exemplified by the numerous instances circulating on social media showcasing the disrespectful treatment of our currency. These appalling acts range from manhandling to spraying Naira notes in celebrating events, marching, and even tossing them at footballs.”
He said, “Currency is a reflection of our national pride. When you treat it like that and expect others to respect you, it won’t come. Such blatant disregard for our nation’s legal tender not only undermines the value of the Naira but also perpetuates a culture of disrespect towards a symbol of our country’s identity.”
He called for stringent measures to deter these acts. “Law enforcement agencies must play a proactive role in identifying and prosecuting individuals who are found to be engaging in such activities. By sending a strong message to the public that these actions will not be tolerated, we can foster a sense of responsibility and respect towards our currency, thereby contributing to the preservation of its integrity.”
Cardoso also spoke about broader security challenges impacting the CBN’s operations, including limited armed security personnel, delays in security clearances, uncoordinated treatment of cash-in-transit services, and the need to combat illicit currency trading. He called for clearer operational frameworks and stronger interagency cooperation.
National Security Adviser, Mallam Nuhu Ribadu, called for stronger enforcement of the law. “Nobody is punished for bad behavior. And they don’t even see it as a bad thing until you start punishing people. So please, I think that is an area that we need to do even more,” Ribadu said.
He also addressed cash movement in the country, calling for regulated systems and standardized procedures. “We need to align, coordinate it, coordinate it properly. The moment something comes, you know why it is coming. You can validate it. You can verify it.”
Ribadu urged financial institutions to strengthen internal security protocols and law enforcement to be proactive in responding to threats. He called for collaboration between the CBN, operators, and law enforcement.
