In a stark warning to businesses operating in Port Harcourt and the wider Rivers State, a recent ruling by the Federal High Court in Lagos has underscored the legal consequences of refusing the Nigerian Naira as legal tender.
Justice Alexander Owoeye sentenced a Lagos-based businessman, Uzondu Precious Chimaobi, to four years imprisonment on Tuesday, April 15, 2025, for violating Section 20 of the Central Bank of Nigeria (CBN) Act, 2007. Chimaobi was found guilty of accepting $5700 (Five Thousand Seven Hundred United States Dollars) as payment for a Cartier diamond bracelet, explicitly refusing to accept the equivalent in Naira.
The Economic and Financial Crimes Commission (EFCC), which prosecuted the case, revealed that Chimaobi’s company, Unlimited Jewellers Limited in Lagos, was intentionally tagging and selling its products in US Dollars, contravening the CBN Act that mandates the Naira as the sole legal tender in Nigeria. An undercover EFCC operation confirmed that the company refused to accept Naira for a transaction.
While Chimaobi initially pleaded not guilty, he later changed his plea. In addition to the jail term, he was given the option of fines on both counts of the charge: N50,000 on the first count and N600,000 on the second. Furthermore, his Cartier Diamond wristwatch, the subject of the illegal transaction, was ordered to be forfeited to the Federal Government of Nigeria.
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This landmark judgment serves as a clear message to all businesses in Port Harcourt and across Nigeria: the Naira is the only legal tender, and its rejection for transactions is a serious offense punishable by imprisonment.
Section 20(1) of the CBN Act, 2007 explicitly states that “the currency notes issued by the Bank shall be legal tender in Nigeria at their face value for the payment of any amount.” Furthermore, Section 20(5) of the same Act makes it a crime for any person to refuse to accept the Naira as a means of payment, stipulating a penalty of a fine or imprisonment upon conviction.
Residents of Port Harcourt are urged to be vigilant and report any business or individual refusing to accept Naira for goods and services to the appropriate authorities, such as the EFCC or the Central Bank of Nigeria.
This case should serve as a strong deterrent, reinforcing the importance of adhering to Nigeria’s monetary laws and protecting the integrity of the national currency. Businesses in Port Harcourt are advised to ensure that all transactions are conducted in Naira to avoid facing similar severe legal repercussions.
