The Nigerian Central Bank has warned locals against currency defacing saying offenders will face jail time.
Over the last decade, the Nigerian Naira has hit some of its worst inflation rates. This has led to the widespread disregard of the Naira note, one of the many reasons locals turn to cryptocurrencies for value account. It has even gotten to the point citizens mutilate and deface notes, and this has concerns arising.
Major Updates
- Currency defacing to be sanctioned by imprisonment.
- Aladeen Badajo says reprinting damaged notes takes a lot of money.
- Sanctions include confinement over six months and fine of over N50,000.
The Nigerian financial sector has been battling horrific inflation for the past several years. So far, efforts have led to worsened cases. It is one of the main reasons many locals choose to store their wealth in foreign currencies or digital currencies.
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Along with the digital money war, the Nigerian Central Bank is also dealing with currency defacing by citizens. To secure the value of the Naira, the financial giant is placing focus on the abuse of notes.
According to the acting assistant director of the Currency Operations Department of the CBN, Aladeen Badajo, the CBN wants to address how locals “mutilate, deface, squeeze and even spray and sell the naira notes.” He stated that the Naira was a national identity symbol hence it should be treated like one. Furthermore, reprinting such damaged notes would take a lot more money.
Badajo has also stated that such acts would incur jail time. Confinement would be no less than a six month term and fines incurred would be from N50,000 and above.
Meanwhile, one crypto blog platform has reached out to Nigerian crypto enthusiast Nathaniel Luz. He expressed his thoughts on the state of the rate of currency abuse in Nigeria.
He explained that spraying notes was a form of celebration in the country, but the CBN has yet to place policies to control the practice. Luz further explained;
Conclusion
“Nigerians go as far as buying new banknotes at a premium of 70% just so they could spray the notes. So I could buy $10,000 worth of naira banknotes for between $15,000 and $17,000 just to spray the money.”
However, Lus doubts “spraying” has any contribution to Naira’s depreciation rate.
Question of the day
Do you agree with Nathaniel Luz?
