CBN raises alarm over illicit Naira transactions, calls for immediate action
The Central Bank of Nigeria (CBN) has expressed deep concern over the increasing prevalence of unlawful transactions involving the Naira, calling for urgent measures to curb the trend.
CBN Governor, Olayemi Cardoso, made this known during the Bank’s Security Workshop in Abuja on Thursday, where security and law enforcement agencies convened to address the issue.
Cardoso revealed that recent investigative exercises conducted in key commercial cities, including Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan, exposed alarming cases of Naira abuse and illegal trading.
“A major issue arising from these transactions is the unlawful practice of placing a premium on banknotes, with charges ranging between 20 and 40 per cent per transaction,” the CBN Governor stated. “The severity of the situation became evident in a recent operation where N2.3 million in banknotes was purchased for a total payment, including premiums, of N3.2 million.”
Cardoso cautioned that such activities not only distort the value of the Naira but also weaken public trust in the financial system.
He pointed out that the mistreatment of the Naira is frequently seen on social media, where individuals mishandle banknotes by spraying, stepping on, or otherwise disrespecting them at social events.
“When we discuss credibility and trust, this is not the way to build it,” he remarked. “The blatant disregard for our national currency not only diminishes the value of the Naira but also undermines respect for our national identity. If we continue to treat it in this manner while expecting a strong currency, we are deceiving ourselves.”
The CBN Governor called for strict enforcement measures to deter such behaviour, urging law enforcement agencies to identify and prosecute individuals involved in illegal currency dealings.
“By making it clear that such actions will not be tolerated, we can instil a greater sense of responsibility and respect for our currency,” he added.
Beyond these cash-related concerns, Cardoso outlined broader security challenges affecting the CBN’s operations, including: Insufficient availability of armed security personnel, particularly in high-risk areas; Delays in obtaining necessary security clearances for operations such as currency evacuations; Interference in routine approvals, disrupting operational efficiency.
He added: uncoordinated handling of cash-in-transit services, resulting in unnecessary arrests and detentions; the need for stronger collaboration to combat illicit currency trading activities.
Addressing these issues, Cardoso emphasised the necessity for a structured approach, improved security protocols, and enhanced cooperation between regulatory bodies and law enforcement agencies.
“We all share a great responsibility to safeguard the financial system,” he said. “This is not just a challenge for the Central Bank alone. We must work together and take pride in restoring confidence in our monetary system. The Naira is more than just currency—it is a symbol of our national identity, and its stability is essential to economic progress.”
In his remarks, the National Security Adviser, Mallam Nuhu Ribadu, stressed the importance of holding offenders accountable.
“From time to time, law enforcement agencies take action, but they need to do more. Ensuring that offenders face justice, however difficult, is essential,” Ribadu stated.
“Impunity is at the heart of many of our problems. When wrongdoing goes unpunished, people fail to recognise it as unacceptable behaviour.”
Commenting on the movement of cash across the country, Ribadu called for stricter regulations and oversight.
“In a well-regulated system where a central authority supervises currency movements, accountability is assured. Every transaction should be tracked and verified,” he asserted.
He raised concerns over the unregulated transportation of cash, noting, “If you board a commercial aircraft in Nigeria today, half of the seats are occupied by money—not to mention private aircraft, boats, and other means of transport. This lack of control creates opportunities for illicit activities to flourish.”
Ribadu urged financial institutions to strengthen internal security measures and called on law enforcement agencies to be proactive in addressing emerging threats.
“Engage with industry stakeholders, collaborate with law enforcement, and take ownership of financial security,” he said. “We are in a period of transformation, and we must change the way we approach the security of our monetary system.
