Man Bags 4-Year Jail Term for Rejecting Naira

In a landmark judgment aimed at reinforcing the Central Bank of Nigeria’s legal tender policy, Justice Alexander Owoeye of the Federal High Court in Ikoyi, Lagos, on Tuesday sentenced one Uzondu Precious Chimaobi to four years’ imprisonment for refusing to accept the naira as payment for goods sold at his jewelry store.

Chimaobi, who owns Unlimited Jewellers Limited, located at Atlantic Mall, Chevron Drive, Lekki, was arraigned by the Lagos Zonal Directorate 1 of the Economic and Financial Crimes Commission (EFCC) on February 5, 2025, on a two-count charge bordering on refusal to accept the naira as a legal tender.

The charges stemmed from a transaction that took place on December 10, 2024, where he insisted on receiving payment in U.S. dollars.

One of the charges read:
“That you, Precious Chimaobi Uzondu, on the 10th of December 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.”

Initially, Chimaobi pleaded not guilty, prompting a full trial. The EFCC called its first witness, Owolabi Oyarekhua Jude, an operative of the commission, to testify.

Led in evidence by prosecution counsel H.U. Kofarnaisa, Jude said, “The Commission received intelligence on the activities of a jewelry company called Unlimited Jewellers Limited, whose owner is one Uzondu Precious Chimaobi.”

He further revealed that the company “intentionally tags and sells its products in dollars as against the CBN Act, 2007, which stipulates Naira as the only legal tender in Nigeria.”

Jude detailed the undercover operation carried out by the EFCC, during which “an operative 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 a receipt was issued in dollars.”

Chimaobi was later arrested and taken into custody.

However, during the resumed hearing on April 14, 2025, Chimaobi changed his plea from “not guilty” to “guilty.” Consequently, the prosecution urged the court to rely on the earlier evidence presented by the EFCC and tendered additional documents, including the defendant’s statement. These were admitted by the court.

Delivering judgment on April 15, Justice Owoeye found the defendant guilty and sentenced him to four years’ imprisonment. On count one, he was given an option of a N50,000 fine, while on count two, he was handed a four-year sentence with an option of a N600,000 fine. Additionally, the Cartier diamond bracelet involved in the transaction was ordered forfeited to the Federal Government of Nigeria.

Chimaobi’s conviction marks one of the few high-profile enforcement cases under the CBN Act, 2007, and signals a stern warning to businesses flouting Nigeria’s currency laws.