The Central Bank of Nigeria (CBN) has expressed deep concerns over the increasing trend of illicit transactions involving the Naira, warning that the practice threatens the stability of the financial system.
CBN Governor, Olayemi Cardoso, raised the alarm on Thursday at the Bank’s Security Workshop in Abuja, where top security and law enforcement agencies convened to tackle the growing issue.
Recent investigations by the CBN revealed widespread abuse of the national currency across major commercial hubs, including Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan. These findings exposed traders and middlemen engaging in illegal cash dealings, imposing premiums of 20% to 40% on banknotes.
Highlighting the severity of the problem, Cardoso cited a case where N2.3 million worth of banknotes was acquired for N3.2 million due to inflated pricing by illicit cash traders. He warned that such practices distort the value of the Naira, fuel inflation, and erode public confidence in the financial system.
Beyond illicit trading, the CBN governor also condemned the blatant abuse of the Naira at social gatherings, where individuals mishandle, spray, and step on banknotes. He stressed that such actions weaken the currency’s credibility and undermine national identity.
“When we talk about credibility and trust, we don’t build it this way,” Cardoso stated. “Disrespecting our legal tender while expecting a strong Naira is self-deception.”
In response, he called for stricter enforcement of currency regulations, urging security agencies to take decisive action against those engaging in illicit transactions and public abuse of the Naira.
Echoing Cardoso’s concerns, National Security Adviser Nuhu Ribadu warned about the unregulated movement of cash within the country. He revealed that large sums of money are frequently transported on commercial and private aircraft, boats, and other means outside regulatory oversight, creating loopholes for illegal financial activities.
Ribadu called for tighter surveillance, urging financial institutions to strengthen internal security measures and law enforcement agencies to enhance their response to illicit financial dealings.
The CBN has vowed to collaborate with security agencies to restore discipline in the handling of the Naira and ensure a stable financial system.
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