Nigeria's Central Bank to Arrest Those in Illicit Forex Trading

The Central Bank of Nigeria (CBN) has said that it is collaborating with the police and other law enforcement agencies to arrest and prosecute anyone found abusing the naira. This comes after the CBN observed there have also been cases where people mishandle the Naira, defacing it, hawking the currency at parties and rejecting the currency in some instances. According to the law, it stipulates that "spraying of, dancing or matching on the Naira or any note issued by the Bank during social occasions or otherwise howsoever shall constitute an abuse and defacing of the Naira or such note and shall be punishable under the law by fines or imprisonment or both."

Meanwhile, the Federal High Court in Abuja has ordered the freezing of the bank accounts of six online investment platforms for 180 days. The court issued the freezing order followed a request by CBN, which accused the firms of using the foreign exchange sourced from the Nigerian market for purchasing foreign bonds/shares in contravention of its directive issued in July 2015. The firms are Bamboo Systems Technology Limited, Rise Vest Technologies Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited. The judge approved the freeze on the accounts and said those aggrieved can approach the court to seek redress. He adjourned the matter to February 20, 2022, for hearing. 

In July 2021, the Central Bank ended the sales of foreign exchange (forex) to bureau de change operators, saying the parallel market has become a conduit for illicit forex flows, as well as graft.