{"id":1453,"date":"2024-05-22T11:33:01","date_gmt":"2024-05-22T11:33:01","guid":{"rendered":"https:\/\/aarndalelaw.com\/?p=1453"},"modified":"2024-05-22T11:33:01","modified_gmt":"2024-05-22T11:33:01","slug":"an-overview-of-the-enforcement-challenges-in-combating-naira-abuse","status":"publish","type":"post","link":"https:\/\/aarndalelaw.com\/new\/an-overview-of-the-enforcement-challenges-in-combating-naira-abuse\/","title":{"rendered":"An Overview Of The Enforcement Challenges In Combating Naira Abuse"},"content":{"rendered":"\n\n\n

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WHAT IS NAIRA ABUSE?<\/strong><\/h2>\n\n\n\n

“Naira abuse” typically refers to the improper handling, mutilation, or defacement of the Nigerian currency, the Naira. This can include actions such as tearing, writing on, or otherwise damaging the currency, as well as using it for purposes other than its intended legal tender functions. Naira abuse is considered a violation of the law and can result in penalties or fines.<\/p>\n\n\n\n

The Central Bank of Nigeria (CBN) is responsible for enforcing regulations to prevent the abuse of the Naira and maintain the integrity of the currency.<\/p>\n\n\n\n

Section 21(1) of the CBN Act (2007)  provides that \u201c A person who tampers with a coin or note issued by the Bank is guilty of an offence and shall on conviction be liable to imprisonment for a term not less than six months or to a fine not less than Fifty Thousand Naira ( =N= 50, 000) or to both such fine and imprisonment\u201d[1]<\/strong><\/a><\/em><\/p>\n\n\n\n

Section 21(2) of the Act provides that \u201cA coin or note shall be deemed to have been tampered with if the coin or note has been impaired, diminished or lightened otherwise than by fair wear and tear or has been defaced by stumping, engraving, mutilating, piercing, stapling, writing, tearing, soiling, squeezing or any other form of deliberate and willful abuse whether the coin or note has or has been thereby diminished or lightened\u201d[2]<\/strong><\/a><\/em><\/p>\n\n\n\n

Section 21(2) of the Act provides that \u201cFor the avoidance of doubt, spraying of, dancing or matching on the Naira or any note issued by the Bank during social occasions or otherwise howsoever shall constitute an abuse and defacing of the Naira\u2026\u201d[3]<\/strong><\/a><\/em><\/p>\n\n\n\n

High-Profile Examples<\/strong><\/p>\n\n\n\n

Bobrisky\u2019s case:<\/strong><\/p>\n\n\n\n

On the 24th<\/sup> of March, 2024, a controversial, popular social media personality with over five million followers on Instagram – Okuneye Idris aka Bobrisky sprayed  (a common practice where guests at celebrations such as weddings, birthdays, and other significant social gatherings throw or spray physical cash on celebrants as a form of gift and public display of affluence and support.)Naira banknotes at a public event.[4]<\/a> Videos of the “spraying” at this event were circulated widely on social media. He faced legal consequences for his actions related to Naira abuse.[5]<\/a><\/p>\n\n\n\n

Bobrisky pleaded guilty to four counts of abusing the currency. His offense involved \u201cspraying\u201d banknotes at various social events. However, this seemingly harmless act has legal implications, as the notes can fall to the ground and be trodden upon. [6]<\/a><\/p>\n\n\n\n

Cubana Chief Priest\u2019s Case:<\/strong><\/p>\n\n\n\n

On the 13th <\/sup> of February, 2024, popular socialite, Pascal Okechukwu alias Cubana Chief Priest during a social event tampered with funds in the denomination of N500 notes issued by the Central Bank of Nigeria at a social event by spraying same for two hours and thereby committed an offence contrary to and punishable under section 21(1) of the Central Bank Act, 2007.[7]<\/a><\/p>\n\n\n\n

The Economic And Financial Crimes Commission (EFCC) arraigned Pascal Okechukwu before the Federal High Court, Lagos on the 17th<\/sup> of April, 2024 on a three-count charge for allegedly spraying and tampering with the naira at a social event, contrary to the provisions of the Central Bank Act of 2007[8]<\/a><\/p>\n\n\n\n

ENFORCEMENT CHALLENGES<\/strong><\/h3>\n\n\n\n

Combating the abuse of the Naira requires strong enforcement measures and collaboration among various stakeholders, including law enforcement agencies, regulatory bodies, financial institutions, and the public. However, several challenges hinder effective enforcement.<\/p>\n\n\n\n