CBN uncovers N2.3m in illicit naira transactions

The Central Bank of Nigeria has raised concerns over the increasing trend of illicit transactions involving banknotes, warning that the practice threatens the stability of the financial system.

CBN Governor, Olayemi Cardoso, disclosed this on Thursday at the Bank’s Security Workshop in Abuja, where security and law enforcement agencies gathered to address the issue.

He revealed that recent mystery shopping exercises conducted in major commercial hubs, including Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan, uncovered widespread abuse of the Naira, with traders and middlemen imposing illegal premiums on banknotes.

He stated that a critical concern arising from these transactions was an illegal act where banknotes were exchanged at a premium ranging from 20 to 40 per cent per transaction.