Man bags Jail term for rejecting naira as legal tender

Justice Alexander Owoeye of the Federal High Court in Ikoyi, Lagos, has sentenced businessman Uzondu Precious Chimaobi to four years behind bars for failing to recognize the Naira as a legal means of payment.

According to a press release from the Economic and Financial Crimes Commission (EFCC), Chimaobi was prosecuted on a two-count charge related to his refusal to accept the Nigerian currency. The charges were brought forward by the EFCC’s Lagos Zonal Directorate 1.

The court found him guilty of the offences, emphasizing the legal obligation of individuals and businesses within Nigeria to honor the Naira as lawful tender.

One of the counts reads: “That you, Precious Chimaobi Uzondu, on December 10 2024, in Lagos, within the jurisdiction of this Honourable Court, refused to accept Naira (Nigeria legal tender) by accepting the sum of $5700 ( Five Thousand Seven Hundred USD) as a means of payment for a purchase of a cartier diamond bracelet with serial number (12345678) and you, thereby , committed an offence contrary to Section 20 of the Central Bank of Nigeria Act, 2007.”

According to the EFCC, the defendant initially pleaded not guilty to the charge, leading to his full trial.

Subsequently, the prosecution presented its first witness, Owolabi Oyarekhua Jude, an EFCC operative, who told the court that “the Commission received intelligence on the activities of a jewellery company called Unlimited Jewellers Limited, “whose owner is one Uzondu Precious Chimaobi.

He added that “The Company, which deals in jewelry at Atlantic Mall, Chevron Drive, Lekki, Lagos intentionally tags and sells its products in Dollars as against the CBN Act, 2007 ,which stipulates Naira as the only legal tender in Nigeria.”

Continuing, he added that “ Subsequently, a covert operation was carried out, where an undercover operative of the Commission disguised as a customer to purchase a Diamond Nail bracelet that was tagged $6000 and bought it for $5700.

“The company refused to receive Naira and demanded Dollars as a means of payment. The payment was made and receipt was issued in Dollars . The owner of the company was arrested and taken to the Commission’s office.”

However, at the resumed sitting on April 14, 2025, the defendant opted to change his “not guilty” plea to “guilty.

Upon his guilty plea, the prosecution counsel, H.U. Kofarnaisa, prayed the court to rely on the evidence earlier given by the investigating officer and admit it in convicting the defendant.

Delivering the judgement on Tuesday, April 15, the court found the defendant guilty and gave him an option of a fine of N50,000( Fifty Thousand Naira) on count one.

The Judge sentenced him to four years imprisonment, with an option of a fine of N600,000 on count two.

His Cartier Diamond wristwatch was ordered forfeited to the Federal Government of Nigeria.