Justice Alexander Owoeye of the Federal High Court sitting in Ikoyi, Lagos, has convicted and sentenced one Precious Chimaobi to four years’ imprisonment for refusing to accept the Naira as legal tender.
Chimaobi was arraigned by the Lagos Zonal Directorate 1 of the Economic and Financial Crimes Commission (EFCC), Awolowo Road, Ikoyi, Lagos, on 5 February 2025, on a two-count charge relating to the rejection of the Naira as legal tender.
One of the counts reads: “That you, Precious Chimaobi Uzondu, on 10 December 2024, in Lagos, within the jurisdiction of this Honourable Court, refused to accept the Naira (Nigeria’s legal tender) by accepting the sum of $5,700 as payment for a Cartier diamond bracelet with serial number (12345678), and thereby committed an offence contrary to Section 20 of the Central Bank of Nigeria Act, 2007.”
He initially pleaded not guilty, leading to a full trial.
The prosecution presented its first witness, PW1, Owolabi Oyarekhua Jude, an operative of the EFCC.
Led in evidence by the prosecution counsel, H.U. Kofarnaisa, Jude testified:
“The Commission received intelligence regarding the activities of a jewellery company, Unlimited Jewellers Limited, owned by Uzondu Precious Chimaobi. The company, based at Atlantic Mall, Chevron Drive, Lekki, Lagos, was tagging and selling its products in US Dollars in violation of the CBN Act, 2007, which designates the Naira as the only legal tender in Nigeria.”
He added: “A covert operation followed, in which an undercover EFCC operative posed as a customer and purchased a diamond nail bracelet originally tagged at $6,000 for $5,700. The company refused to accept Naira and insisted on US Dollars. The payment was made in Dollars, and a receipt was issued accordingly. The owner was then arrested and taken to the Commission’s office.”
At the resumed hearing on 14 April 2025, the defendant changed his plea from “not guilty” to “guilty”.
Consequently, Kofarnaisa urged the court to rely on the evidence already presented by the investigating officer to convict the defendant.
The court admitted the defendant’s statement and supporting evidence.
Justice Owoeye adjourned for judgment until Tuesday, 15 April 2025.
Delivering the ruling, the court found the defendant guilty. On count one, he was given an option of a ₦50,000 fine. On count two, he was sentenced to four years in prison, with an option of a ₦600,000 fine.
Additionally, his Cartier diamond wristwatch was ordered forfeited to the Federal Government of Nigeria.
The conviction followed his refusal to accept the Naira, having instead received $5,700 as payment for a Cartier diamond bracelet—an act in breach of the Central Bank of Nigeria Act.
