The Federal High Court in Lagos Thursday convicted a businessman and his company of refusing to accept naira as a legal tender.
The judge, Akintayo Aluko, convicted Aniogor Obiajulu and his firm, ICE BY CW, after they pleaded guilty on Thursday to the two counts preferred against them.
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The Economic and Financial Crimes Commission (EFCC) had charged them with rejecting naira as legal tender, while accepting $10,000 for the sale of diamond Clover bracelet in Lagos last December. It also charged the defendants with money laundering for retaining the $10,000, knowing it to be proceeds of crimes.
Mr Aluko sentenced Mr Obiajulu to six months’ imprisonment for the first count, although with an option of N50,000 fine.
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He also sentenced him to four years’ imprisonment for the money laundering offence alleged in the second count, but also with an option of N1 million fine.
He ordered permanent forfeiture of the Diamond Clover bracelet, the subject of the transaction, to the Federal Government of Nigeria.
The judgement comes days after a judge of the Federal High Court in Lagos, Alexander Owoeye, convicted another jewelry seller, Precious Uzondu, of refusing to accept naira for the sale a bracelet last December.
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The convict accepted $5,700 for the sale of a Cartier diamond bracelet to an EFCC undercover agent, who disguised as a customer.
The judge imposed a N50,000 fine as sentence for the first count.
He also sentenced the defendant to four years’ imprisonment, though with an option of N600,000 fine, for the second count.
Road to Thursday’s conviction
Earlier on Thursday, Mr Obiajulu pleaded guilty to the charges for himself and his firm.
In the first count, the EFCC accused him and his firm, ICE BY CW, of refusing to accept naira by accepting $10,000 for the sale of diamond Clover bracelet in Lagos on 10 December 2024.
The prosecution said the act constituted an offence contrary to and punishable under Section 20(1) of the Central Bank of Nigeria Act, 2007.
The legal provision criminalises refusal to accept naira as a means of payment for goods and services in Nigeria. However, this only applies in Nigeria and does extend to international trade.
In the second count, EFCC charged the defendants with retaining the $10,000 considered as proceeds of the crime: pricing and accepting the United States dollars as a means of payment for goods and services. The money laundering offence is said to be contrary to Section 18 (2) (d) of the Money Laundering (Prevention and Prohibition) Act, 2022 and punishable under Section 18 (3) of the same Act.
While section 18(2) (d) of the anti-money laundering law criminalises the acquisition, retention and use of funds obtained from unlawful activities by anyone, section 18 (3) of the Act prescribes four years’ imprisonment for such a person or a fine not less than five times the value of the proceeds of the crime.
Following the defendants’ guilty plea, prosecution counsel, C.C. Okezie, tendered, in evidence, the payment receipt of the bracelet dated 10 December 2024, the defendant’s extrajudicial statement dated 27 December 2024 and the Diamond bracelet.
Mr Okezie also urged the court to convict the defendant as charged, a call the court heeded.
Concerns about dollarisation of Nigeria’s economy
The case, like the one earlier in the week, highlights the concerning dollarisation of Nigeria’s economy, where the US dollar is widely and openly used alongside the naira. This has thrived despite the criminalisation of the act.
The Nigerian authorities have blamed the widespread use of the naira for its contribution to exchange rate instability in the country.
In October last year, Olawale Edun, Nigeria’s minister of finance and coordinating minister of the economy, said the Nigerian government was making key efforts to de-dollarise the economy amid plans to strengthen the local currency.
READ ALSO: Jeweller convicted, forfeits $5,700 bracelet for refusing to accept naira as legal tender
Mr Edun said this on the sidelines of the World Bank/IMF annual meetings in Washington DC.
The minister said the move was part of efforts by the fiscal authorities to complement the efforts of the monetary policy authorities and drive necessary economic reforms.
“There is also a move to dedollarise the Nigerian economy,” Mr Edun said, adding that local providers of services, regulators, and others are being asked to “invoice in Naira rather than dollars.”
“It reduces the value for dollar and of course increases the demand for Naira,” he explained.
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