In recent years, the abuse of the Nigerian currency-the Naira-has attracted increased attention from law enforcement agencies, financial regulators, and the general public, highlighting the seriousness of the issue. From spraying money at parties to defacing or mutilating Naira notes, many individuals engage in these acts without realizing they are criminal offences under Nigerian law.
The Economic and Financial Crimes Commission (EFCC) has in the past couple of weeks showed an intention to pursue criminal infractions relating to the abuse of naira notes, particularly the act of spraying of the notes at events and during social occasions. In February 2024, a Nollywood actress was reported to have been convicted of the charge brought by the EFCC on abuse of the naira.
The crackdown against naira abuse garnered widespread attention across social media when a popular social media user, Idris Okuneye, was convicted of the offence, and criminal charges were brought against another popular social media user, Cubana Chief Priest, on the same offence which is still pending at the time of writing this piece.
What Constitutes Naira Abuse?
“Naira abuse” typically refers to the improper handling, mutilation, or defacement of the Nigerian currency, the Naira. Naira abuse refers to any unlawful act that defaces, damages, or dishonours the Nigerian currency, embodying its value and facilitating economic transactions. 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.
The law prohibits various forms of abuse. This includes soiling, spraying, dancing on, stamping, writing on, mutilating, diminishing, engraving, piercing, squeezing, tearing or stapling them as well as any other form of defacement. In my view the wording could also mean that rolling up naira notes and keeping them in your socks or underwear could fall foul of the law.
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It is also an offence to hawk, sell or otherwise trade in naira notes or coins or any other note issued by the CBN. There is no denying that the practice of spraying naira notes, although a cultural norm, is a criminal action.
The Fight Against Naira Abuse/ The Buzz
Legal Framework and Penalties
It is, however, the CBN Act that prescribes offences against the abuse of the naira. The Act criminalises offences of refusal to accept the naira as a means of payment and tampering with coin or note. Tampering includes impairing, lightening (except by fair wear and tear), defacing by stumping, engraving, mutilating, piercing, stapling, writing, tearing, soiling, squeezing or any other form of deliberate and willful abuse.
Section 21 (3) of the Act specifically criminalises offences relating to the abuse of the naira that constitutes “spraying of, dancing or matching on the naira or any note issued by the bank during social occasions or otherwise.” It is punishable with imprisonment of not less than 6 months or a fine of not less than N50,000.00 or both. By the provision of section 21(1), (2), (3) and section 20(5) of the CBN Act 2007, the following are offences punishable by imprisonment for a term not less than six months or to a fine not less than N50,000 or to both such fine and imprisonment.
‘For 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 or such note and shall be punishable under Sub-section (1) of this section.
The law says that any person convicted for the abuse of a naira note or who tampers with a coin or note is liable for imprisonment for a term not less than six months or to a fine not less than N50,000 (approximately US$37) or to both a fine and imprisonment.
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The Role of EFCC and Other Agencies
There is the question whether naira abuse is an offence that concerns the EFCC. Key functions of the EFCC as provided under the Act in Section 6 include the investigation of all financial crimes; the co-ordination and enforcement of all economic and financial crimes laws and enforcement functions conferred on any other person or authority; the adoption of measures to eradicate the commission of economic and financial crimes; taking charge of, supervising, controlling, coordinating all the responsibilities, functions and activities relating to the current investigation and prosecution of all offences connected with or relating to economic and financial crimes; the coordination of all existing economic and financial crimes investigating units in Nigeria; maintaining a liaison with the offices of the Attorney-General of the Federation, Nigeria Customs Service, the Immigration and Prison Service Board, the Central Bank of Nigeria, the Nigerian Deposit Insurance Corporation, the Nigerian Drug Law Enforcement Agency and all government security enforcement agencies and such other financial supervisory institutions in the eradication of economic and financial crimes.
It is clear from its establishment Act that the EFCC is created to be the body or agency of government with overarching authority over economic and financial crimes. Financial crimes encompass a wide range of illegal activities that involves deceit or fraud and includes other illicit practices related to financial transactions or assets. Tampering and abuse of currency falls under this definition along with more serious offences such as counterfeiting, manipulation of currency exchange rates or currency markets, currency smuggling and hoarding.
The EFCC is certainly empowered to enforce the provisions of the CBN Act in this regard and to investigate and prosecute such offences, with or without the collaboration of the CBN. In February 2024, the Economic and Financial Crimes Commission (EFCC) raised a Special Task Force against Currency Racketeering, Dollarization of the Nigerian Economy, Abuse, and Mutilation of Naira Notes. With the recent arrests and activities of the Economic and Financial Crimes Commission (EFCC), the awareness of spraying money as naira abuse at parties and social functions has been well established.
Cultural Context vs. Legal Imperatives
It is intrinsic to Africans, particularly Nigerians, to spray money at parties, clubs, events, streets, and general social functions as a show of love. This is predominantly a nature that cuts across all ethnic, tribes and culture. For Nigerians, what is a party without spraying of money and hype? Are you even Nigerian if do not like to spray money at events? Well, except you are devoid of funds.
It is common to see Nigerians throw naira notes in the air, step on them or paste them on other people while dancing at parties and other social events, including traditional weddings. I have never attended a traditional marriage or engagement where this doesn’t happen. It is a significant part of the traditional marriage ceremony.
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I suspect that if a poll is conducted, majority of Nigerians would consider the act of spraying naira notes at events and celebrations more as poor cultural norms entrenched in the fabric of our social engagements, than criminal acts worthy of prosecution and conviction. Its prevalence and societal acceptance pose a challenge to security agencies to effectively prosecute all offenders. The exercise of its discretion in determining its targets is likely to subject the security agencies to allegations of favouritism and nepotism. It is quite an accepted cultural observance and, in a country fraught with victim-based offences, there will be a challenge to the use of resources to prosecute this class of offences.
Within Nigeria’s cultural and political context, eradicating abuse of the naira, especially spraying of the notes, requires a multifaceted approach that acknowledges the complexities of culture and societal change. The point needs to be made again that it would not be in the country’s best interests if the EFCC intends to pursue every infraction in this regard, in view of the prevalence of the practice.
Challenges in Combating Naira Abuse
Several factors contribute to the persistent problem of Naira abuse in Nigeria:
- Lack of Awareness: Many Nigerians are unaware of the laws and regulations governing the use and protection of the Naira.
- Inadequate Resources: Law enforcement agencies tasked with combating Naira abuse often face resource constraints, including insufficient funding, personnel, and technological infrastructure.
- Informal Economy: Abuse of the Naira is common in the informal economy where cash transactions and regulatory oversight are limited.
- Jurisdictional Issues: Jurisdictional issues often make it challenging to enforce Naira abuse laws, especially in cases of cross-border counterfeiting or currency smuggling.
Strategies for Eradicating Naira Abuse
Other strategies must, thus, be employed along with criminal prosecution to lead to an eradication of the practice. Other models of social persuasion should be considered in deterring the practice. As Dakuku Peterside stated in an article published by the Cable Newspaper on 22 April 2024, “changing public behaviour requires a multi-faceted approach that combines legislation, education, community engagement, social support and enforcement efforts.”
The nature of the criminal offences, being victimless, requires that a re-orientation campaign by relevant agencies, including the CBN, the National Orientation Agency, state governments, federal and state Ministries of Education, banks, and non-bank financial institutions, be considered. Education and awareness programmes, which can be infused into school curriculum, are essential for the long-term subsistence of the current campaign. It might be necessary to initiate community engagement interventions across different groups in order to foster dialogue and discussions, which are essential in challenging the practices. Leaders and cultural influencers are important in promoting cultural change. Media, both traditional and alternative, must be employed.
Combating Naira abuse requires a multifaceted approach. Law enforcement agencies, policymakers, and the public must work together to raise awareness, enhance legal provisions, and ensure consistent enforcement. Public awareness and enlightenment of the public should be given more credence by the Central Bank of Nigeria and the law enforcement agencies (the Nigerian Police Force and the Economic and Financial Crime Commission). The Central Bank of Nigeria should intensify its responsibility of public sensitization on proper handling of naira notes and promotion of public confidence in our currency.
The law enforcement agencies should make similar effort in addition to their powers to arrest, investigate and prosecute. For instance, the ‘EFCC-CONNECT’ an online open sensitization forum of the citizens should be amplified. This is primarily because there is no relative gain in jailing or crime profiling citizens who have sufficiently been law-abiding with no actual intention to violate the law. However, it is a well-established legal principle that ignorance of the law is not an excuse.
Recommended Measures
- Public Awareness Campaigns: Educating the public about the importance of preserving the integrity of the Naira through targeted awareness campaigns can foster a culture of respect for the currency.
- Training and Capacity Building: Investing in specialized training programs and capacity-building initiatives is crucial for enhancing the expertise of law enforcement personnel involved in combating Naira abuse.
- Collaboration with Law Enforcement Agencies: Foster greater collaboration among law enforcement agencies, financial institutions, and regulatory bodies to share intelligence, coordinate enforcement actions, and exchange best practices.
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