CBN Act: NASS proposes N500,000 each for naira abuse, refusing naira payment, buying naira
Abuja, Nigeria - September 4, 2015: Central Bank of Nigeria headquarters building seen from the street, National Ecumenical Centre in background.
The Nigerian Senate has introduced a bill to amend the Central Bank of Nigeria Act 2007, proposing a 900 per cent hike in minimum fine for naira abuse from N50,000 to N500,000.
The penalty of N500,000 affects abuse of naira, refusing to accept payment in naira and buying and selling of naira.
The proposed legislation sponsored by Senator Adetokunbo Abiru (Lagos East), seeks to significantly increase penalties for naira abuse. The bill was earlier sponsored by Senator Darlington Nwokocha before he was sacked from office by an Appeal Court in Lagos.
The bill, titled ‘A Bill for an Act to Amend the Central Bank of Nigeria Act No. 7 of 2007,’ aims to empower the Central Bank of Nigeria (CBN) to better fulfil its principal objectives.
The bill proposes a minimum fine of N500,000 or six months imprisonment for anyone who refuses to accept naira as a means of payment in Nigeria.
The amendment read: “A person who refuses to accept the Naira as a means of payment or who prices or denominates the cost of any product or service or consummates any non-export business in Nigeria other than in Naira is guilty of an offence (unless the Bank has by written circular published in the National Gazette permitted such transaction) and liable on conviction to a fine of N500, 000 or 6 months imprisonment.”
The Senate is also proposing a new minimum fine of N500,000 for anyone who engages in the buying and selling of naira notes.
“A person who buys/sells Naira notes at a mark-up 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 N500,000 or Ten per cent of the transaction value (whichever is higher), or six (6) months imprisonment.”
These proposed changes are designed to deter the misuse and abuse of the national currency, ensuring that the naira remains the principal means of transaction within the country.
By imposing stiffer penalties, the Senate aims to reinforce the sanctity of the naira and uphold its value in the face of economic challenges.
