The Central Bank of Nigeria (CBN) said it may resort to the arrest and prosecution of Nigerians using naira to buy dollars, noting that it is an illegal practice.
The implication is that, road side and street sellers of foreign currencies will be forced to close business as the trade is now termed illegal.
Central bank governor, Godwin Emefiele, issued the threat at the Monetary Policy Committee (MPC) meeting in Lagos.
Emefiele asked Nigerians illegally exchanging naira for dollar to stop, adding that the apex bank would conduct investigations and bar those found culpable from conducting transactions in Nigerian banks.
“For those taking money from banks to buy dollars, it is illegal to do so. If the security agencies hold you, you will know the implication of that,” Emefiele said.
Mr Emefiele disclosed the apex bank’s monitoring of customers and banks, warning that the CBN would sanction banks caught in illegal transactions.
“We will conduct investigations, and we will have proof, and you will not be able to conduct transactions in any Nigerian bank. We will place ‘post no debit’ on the defaulting customer’s account. It is a very injurious tool to stop you from conducting illegal flows, either domestic or foreign currency,” added the CBN governor.
The warning followed the central bank’s efforts to prevent further deterioration of the naira’s value and the country’s economy.
The naira on Monday crashed to a historic low at the parallel market, exchanging for N620 against the U.S. dollar, according to the exchange platform Aboki Forex. It is currently reported to exchange for N630/$.
The CBN, in July 2021, stopped foreign exchange transactions with bureaux de change.
