A Federal High Court in Ikoyi, Lagos, has sentenced businessman Uzondu Chimaobi to four years in prison for refusing to accept the naira as a legal form of payment, opting instead for a dollar transaction in violation of Nigerian financial regulations.
Justice Alexander Owoeye delivered the judgment on Tuesday, convicting Chimaobi on a two-count charge brought by the Economic and Financial Crimes Commission. The EFCC accused him of breaching Section 20 of the Central Bank of Nigeria Act by insisting on receiving $5,700 for the sale of a Cartier diamond bracelet, instead of accepting the naira, Nigeria’s official currency.
Initially pleading not guilty during his arraignment in February, Chimaobi faced a full trial. The EFCC presented testimony from one of its operatives, who revealed that intelligence was received about Chimaobi’s jewellery business, Unlimited Jewellers Limited, located at Atlantic Mall in Lekki. The business was flagged for listing and transacting products exclusively in U.S. dollars.
An undercover EFCC agent visited the store, posing as a buyer, and confirmed that the Cartier bracelet priced at $6,000 was sold to him for $5,700, with payment made strictly in dollars. No naira was accepted, and the transaction receipt was issued in the foreign currency. Following the sting operation, Chimaobi was arrested and taken into custody.
During a later court session on April 14, the defendant changed his plea to guilty. The EFCC prosecutor requested that the court admit the previous evidence as proof of guilt. The judge granted the request and proceeded to deliver a ruling the next day.
Justice Owoeye found Chimaobi guilty and sentenced him to four years behind bars, with an option of a N50,000 fine for the first count and N600,000 for the second. Additionally, the Cartier diamond bracelet involved in the transaction was ordered forfeited to the Nigerian government.
Chimaobi’s conviction marks a significant enforcement of the Central Bank’s directive that prohibits pricing and payment in foreign currencies within the country, aiming to reinforce the sovereignty of the naira in local transactions.
