The Central Bank of Nigeria (CBN) has raised concerns over the increasing cases of illicit transactions involving the Naira. According to CBN Governor, Olayemi Cardoso, these transactions not only distort the value of the Naira but also undermine public confidence in the financial system.
Key Issues:
- Naira Commoditization: Recent mystery shopping exercises revealed instances of Naira commoditization and abuse, with premiums charged on banknotes ranging from 20% to 40% per transaction.
- Abuse of Naira: The CBN Governor noted that the abuse of the Naira is frequently displayed on social media, with individuals mishandling, spraying, and stepping on banknotes at social events.
- Security Challenges: Cardoso outlined broader security challenges affecting the CBN’s operations, including limited availability of armed security personnel, delays in obtaining security clearances, and uncoordinated handling of cash-in-transit services.
Calls to Action:
- Strict Measures: The CBN Governor called for strict measures to deter illicit transactions and emphasized the role of law enforcement agencies in identifying and prosecuting offenders.
- Regulated System: National Security Adviser, Mallam Nuhu Ribadu, stressed the need for a regulated system to supervise currency movement and ensure proper accountability.
- Strengthened Security: Ribadu urged financial institutions to strengthen their internal security measures and called on law enforcement agencies to be proactive in tackling emerging threats.
Source: The Nation
