Central Bank of Nigeria (CBN) has raised alarm over the commoditization of Naria in commercial cities in the country and enlisted security and law enforcement agents to tackle the menace.
CBN pointed at some Nigeria’s commercial hubs, including Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan as hotbeds.
Olayemi Cardoso, governor of the CBN, said that the growing trend of this illicit transactions involving banknotes requires immediate and urgent intervention.
He spoke Thursday at the Security Workshop held in Abuja in which security and law enforcement agents were major participants.
“A critical concern that arises from these transactions is an illegal act and a premium charged on banknotes ranging from 20% to 40% per transaction,” the CBN Governor stated, adding, ” the gravity of this situation is further exposed by a recent exercise where banknotes amounting to ₦2.3 million were acquired with a total payment, including premiums, of ₦3.2 million.”
Cardoso warned that this practice not only distorts the value of the Naira but also undermines public confidence in the financial system. He noted 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,” he stated. “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.”
Cardoso urged strict measures to deter these practices, emphasizing 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.
Beyond these cash-related concerns, Cardoso 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, uncoordinated handling of cash-in-transit services, leading to unwarranted arrests and detentions and the need for stronger collaboration to combat illicit currency trading activities.
According to Cardoso, addressing these challenges 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.”
In his remarks, Mallam 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 stated. “Impunity is the mother of all the problems we have. Nobody is punished for bad behavior, and they don’t even see it as a bad thing until they are held accountable.”
Addressing the movement of cash within the country, Ribadu called for stricter regulations and oversight.
“When you have a regulated system where one authority supervises currency movement, it ensures proper accountability. The moment something comes in, you should know why it is coming, verify it, and track it.”
He raised concerns over the unregulated transportation of cash, noting that “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.”
Ribadu urged financial institutions to strengthen their internal security measures and called on law enforcement agencies to be proactive in tackling emerging threats.
“Engage with operators, collaborate with law enforcement, and take responsibility,” he said.
“We are in a transformation period, and we must change the way we handle our financial security.”