‘It weakens value’ — Cardoso seeks stricter measures against naira abuse

The Central Bank of Nigeria (CBN) has raised concerns over the growing trend of illicit transactions involving banknotes.

Olayemi Cardoso, the CBN governor, spoke at the bank’s security workshop held in Abuja on Thursday.

The event was attended by security and law enforcement agencies.

Speaking at the event, Cardoso said mysterious shopping exercises conducted in major commercial hubs, including Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan, uncovered disturbing instances of naira commoditisation and abuse.

“A critical concern that arises from these transactions is an illegal act and a premium charged on banknotes ranging from 20 percent to 40 percent per transaction,” he said.

“The gravity of this situation is further exposed by a recent exercise where banknotes amounting to N2.3 million were acquired with a total payment, including premiums, of N3.2 million.”

Cardoso warned that the practice distorts the value of the naira and also undermines public confidence in the financial system. 

He added that the abuse of the naira is frequently displayed on social media, where individuals are seen mishandling, spraying, and even stepping on banknotes at social events.

“When we talk about credibility and trust, we don’t build it this way,” Cardoso said. 

“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.”

The CBN governor further called for strict measures to deter perpetrators, stressing the role of law enforcement agencies in identifying and prosecuting individuals engaged in illicit currency dealings. 

“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,” he added.

Cardoso further outlined broader security challenges affecting the CBN’s operations including limited availability of armed security personnel, especially in high-risk areas; delays in obtaining necessary security clearances for operations such as currency evacuations; interference in routine approvals, affecting operational efficiency.

Others are uncoordinated handling of cash-in-transit services, leading to unwarranted arrests and detentions, stressing the need for stronger collaboration to combat illicit currency trading activities.

IMPROVE SECURITY PROTOCOLS, LAWS TO ADDRESS CHALLENGES 

Cardoso said addressing the challenge requires a more structured approach, improved security protocols, and enhanced cooperation between regulatory agencies and law enforcement bodies.

“We all have a tremendous responsibility to protect what has been accomplished,” he said. 

“This is not just a Central Bank problem. We all have to work together and take pride in restoring confidence in the financial system. The Naira is more than just a currency; it is a symbol of our national identity, and its strength is crucial for the economy.”

On his part, Nuhu Ribadu, national security adviser, stressed the need for law enforcement agencies to take stronger action against offenders.

“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 said.

“Impunity is the mother of all the problems we have. Nobody is punished for bad behaviour, and they don’t even see it as a bad thing until they are held accountable.”

He raised concerns over the unregulated transportation of cash.

“In Nigeria today, if you board a commercial aircraft, half of the seats are occupied by money—not to mention private aircraft, boats, and other means of transport. This lack of control creates an avenue for illegal activities to thrive,” he said.

Ribadu called for stricter regulations and oversight to address the movement of cash within the country.

He urged financial institutions to strengthen their internal security measures and called on law enforcement agencies to be proactive in tackling emerging threats.