CBN Raises Alarm Over Rising Illicit Transactions Involving Naira
The Central Bank of Nigeria (CBN) has raised serious concerns over the increasing trend of illicit transactions involving banknotes, warning that such activities threaten the stability of the naira and public confidence in the financial system.
CBN Governor Olayemi Cardoso delivered the warning at a high-level security workshop in Abuja on Thursday, attended by security and law enforcement agencies.
Cardoso revealed that recent undercover operations in major commercial hubs—including Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan—uncovered alarming cases of naira commoditization and abuse.
“A critical concern that arises from these transactions is an illegal act where a premium is charged on banknotes, ranging from 20 percent to 40 percent per transaction,” Cardoso stated.
He further disclosed that in a recent operation, individuals acquired naira banknotes worth N2.3 million but paid a total of N3.2 million, including the illicit premium.
The CBN governor expressed deep concern that these illegal practices not only distort the true value of the naira but also erode trust in the financial system. He also condemned the growing trend of naira abuse, particularly on social media, where individuals are seen spraying, mishandling, 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 weakens the value of the naira and erodes respect for our national identity. If we disrespect our currency in this manner and expect a strong naira, we are deceiving ourselves.”
To curb this trend, Cardoso called for stricter enforcement measures and urged law enforcement agencies to identify and prosecute individuals engaged in illicit currency dealings.
“By sending a strong message that these actions will not be tolerated, we can foster a sense of responsibility and respect for our currency,” he added.
Beyond illicit transactions, Cardoso highlighted broader security challenges impacting the CBN’s operations. These include a shortage of armed security personnel in high-risk areas, delays in obtaining necessary security clearances for operations such as currency evacuations, and uncoordinated cash-in-transit handling, which has led to unwarranted arrests and detentions.
He stressed the need for improved security protocols and stronger collaboration between regulatory bodies and law enforcement agencies to combat illicit currency trading activities.
“We all have a tremendous responsibility to protect what has been accomplished,” Cardoso said. “This is not just a Central Bank problem. We must 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.”
Speaking at the event, National Security Adviser Nuhu Ribadu echoed Cardoso’s concerns, calling for stricter enforcement of laws against financial crimes.
“From time to time, law enforcement acts, but 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 behavior, and they don’t even see it as wrong until they are held accountable.”
Ribadu also raised alarm over the unregulated movement of cash within the country.
“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.
He urged financial institutions to strengthen their internal security measures and called on law enforcement agencies to be more proactive in tackling financial crimes.
