The Central Bank of Nigeria (CBN) has expressed deep concerns over the increasing trend of illicit cash transactions, warning that the practice threatens the stability of the financial system.
CBN Governor Olayemi Cardoso, speaking at a security workshop in Abuja, disclosed that mystery shopping exercises conducted in major commercial hubs—including Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan—uncovered widespread abuse of the Naira. He revealed that traders and middlemen were imposing illegal premiums on banknotes, charging as much as 40% per transaction.
A recent investigation found that N2.3 million in cash was sold for N3.2 million due to inflated pricing by illegal money traders. Cardoso described this as a serious economic distortion that erodes trust in the financial system and contributes to inflationary pressures.
He also criticized the public display of Naira abuse at social events, where people spray, step on, and mishandle the currency. He urged law enforcement agencies to intensify efforts in identifying and prosecuting those engaged in illicit currency dealings, stressing that stricter enforcement would help restore confidence in the Naira.
Cardoso further noted that security challenges—including the limited availability of armed personnel for currency evacuations and interference in routine cash movements—were affecting the CBN’s operations. He called for better coordination between regulatory bodies and security agencies to curb these threats.
