The Central Bank of Nigeria (CBN) and the Office of the National Security Adviser (ONSA) have launched a renewed crackdown on the illegal sale and abuse of the naira, vowing to end the practice of currency commoditization that has seen Point of Sale (POS) operators and money merchants charge as much as 20 to 40 percent premiums for cash transactions.
This commitment was made during a high-level seminar in Abuja, organized by the CBN in collaboration with ONSA, bringing together key financial stakeholders, law enforcement agencies, and regulators to tackle the worsening naira abuse crisis.
Illegal Naira Trade on the Rise
CBN Governor Olayemi Cardoso raised alarm over the growing trend of illegal cash transactions, where banknotes are sold at exorbitant rates. He revealed that a recent undercover operation in major commercial cities—including Abuja, Asaba, Benin, Kano, and Ibadan—exposed a widespread black market for naira, where individuals were charged between 20% and 40% in transaction fees just to access cash.
“In one case, banknotes worth N2.3 million were purchased for N3.2 million, highlighting the outrageous premiums being placed on our own currency,” Cardoso disclosed.
Beyond illicit cash sales, the CBN governor condemned the widespread mishandling and abuse of naira notes, particularly at social events. Viral videos frequently show individuals spraying, trampling, or tossing naira notes, treating the national currency with disrespect and disregard.
“The naira is a symbol of our national pride. When we treat it poorly, we undermine our country’s identity and value,” Cardoso added.
Security Implications of Naira Abuse
National Security Adviser Nuhu Ribadu underscored the national security risks posed by unregulated cash movements and illegal naira trading. He warned that allowing the abuse of the currency to continue could destabilize the economy, limit access to essential services, and erode public trust in the financial system.
“Everything revolves around money. If it is not properly regulated, the economic and security consequences can be devastating,” Ribadu stated.
He called for stronger enforcement actions and collaborative efforts among government agencies to create a secure and resilient financial ecosystem, ensuring that the movement of cash remains safe and properly monitored.
Moving Forward: Enforcement and Policy Adjustments
The seminar concluded with stakeholders agreeing on urgent measures to combat naira abuse, including:
- Stepped-up law enforcement operations to crack down on illegal currency sales.
- Stronger penalties for naira abuse, particularly at public events.
- Regulation of POS operators and cash agents to prevent exploitation.
- Increased public awareness campaigns to educate citizens on the legal implications of currency abuse.
With this renewed push, the CBN and ONSA are making it clear that the illegal trade and abuse of naira will no longer be tolerated. Whether these measures will be strictly enforced remains to be seen, but for now, the battle to restore respect for Nigeria’s national currency is in full force.
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