The Lagos Zonal Directorate of the Economic and Financial Crimes Commission (EFCC) has arraigned one Precious Chimaobi Uzondu before Justice A.O. Owoeye of the Federal High Court sitting in Ikoyi, Lagos, on a two-count charge bordering on the alleged refusal to accept the Nigerian Naira as legal tender.
The case, which has drawn significant public attention, underscores the ongoing efforts by Nigerian authorities to enforce the use of the national currency and uphold the provisions of the Central Bank of Nigeria (CBN) Act.
According to the charges filed by the EFCC, Uzondu is accused of refusing to accept the Naira as a means of payment during a transaction in Lagos on December 10, 2024.
Instead, he allegedly accepted $5,700 (Five Thousand Seven Hundred US Dollars) as payment for the purchase of a Carter diamond bracelet with serial number 12345678.
One of the counts reads:
*“That you, Precious Chimaobi Uzondu, on the 10th of December 2024, in Lagos, within the jurisdiction of this Honourable Court, refused to accept Naira (Nigeria’s legal tender) by accepting the sum of $5,700 (Five Thousand Seven Hundred USD) as a means of payment for the purchase of a Carter diamond bracelet with serial number 12345678, thereby committing an offense contrary to Section 20 of the Central Bank of Nigeria Act, 2007.”
The EFCC emphasized that the alleged act violates Section 20 of the CBN Act, which mandates the acceptance of the Naira as the sole legal tender for transactions within Nigeria.
When the charges were read to him in court, Uzondu pleaded “not guilty.” Following his plea, the prosecution counsel, Hannatu U. KofarNaisa, requested a trial date and urged the court to remand the defendant in a correctional facility pending the commencement of the trial.
In response, Uzondu’s defense counsel, Jennifer Achinuagole, informed the court of a pending bail application and requested that it be adopted as an oral application.
However, KofarNaisa countered by presenting a written address and a counter-affidavit opposing the bail application. She urged the court to reject the defendant’s request and proceed with the trial.
After carefully considering submissions from both parties, Justice Owoeye granted the defendant bail in the sum of ₦5 million (Five Million Naira).
The bail conditions require two sureties, each providing the same amount.
The sureties must own landed properties within Lagos State, which will be verified by the court, and must also swear to an affidavit of means.
Pending the fulfillment of these bail conditions, Justice Owoeye ordered that Uzondu be remanded in the Ikoyi Correctional Centre.
The case was adjourned to April 8, 2025, for the commencement of trial.
Legal implication
This case highlights the Nigerian government’s commitment to enforcing the use of the Naira as the country’s sole legal tender.
The CBN Act, 2007, explicitly prohibits the refusal of the Naira for transactions within Nigeria, and violations of this provision are treated as serious offenses.
The arraignment of Uzondu serves as a reminder to individuals and businesses of the legal consequences of rejecting the national currency.
It also reflects the EFCC’s determination to clamp down on financial practices that undermine the Naira’s value and the country’s monetary policies.
The Naira
The Naira (₦) is the official currency of Nigeria, introduced on January 1, 1973, to replace the Nigerian Pound as part of the country’s transition to a decimal currency system. It is subdivided into 100 kobo.
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The Naira is issued and regulated by the Central Bank of Nigeria (CBN), which manages its circulation, value, and monetary policies.
The currency is available in both coins and banknotes. Coins are denominated in kobo (e.g., 50 kobo, ₦1, ₦2), while banknotes come in denominations of ₦5, ₦10, ₦20, ₦50, ₦100, ₦200, ₦500, and ₦1,000.
In 2023, the CBN introduced redesigned versions of the ₦200, ₦500, and ₦1,000 notes to enhance security features, curb counterfeiting, and promote a cashless economy.
The Naira’s value is influenced by factors such as Nigeria’s oil exports, foreign exchange reserves, inflation rates, and monetary policies.
As the legal tender for Africa’s largest economy, the Naira plays a crucial role in Nigeria’s financial system, though it has faced challenges such as devaluation, inflation, and foreign exchange shortages in recent years.
Despite these issues, the Naira remains a key symbol of Nigeria’s economic identity and resilience.
