CBN bill bans spraying of naira notes

CBN bill bans spraying of naira notes

Ibanga Isine, Abuja

President Olusegun Obasanjo has sent a new Central Bank of Nigeria bill to the National Assembly, which seeks to curtail the abuse of the country's currency.


At the moment, hawkers trade openly in the currency, while socialites spray the naira at parties.

The bill also prescribes a five-year jail term for falsification or counterfeiting of the currency.

According to Section 21, subsection 1-4 of the bill, "Any person who tampers with a coin or note issued by the Bank is guilty of an offence and shall on conviction be liable to imprisonment for a term not less than six months or to a fine not less than N50,000 or to both cash fine and imprisonment.

"A coin or note shall be deemed to have been tampered with if the coin or note has been impaired, diminished or lightened otherwise than by fair wear and tear or has been defaced by stumping, engraving, mutilating, piercing, stapling, writing, tearing, soiling, squeezing or any other form of deliberate and willful abuse whether the coin or note has or has not been thereby diminished or lightened.

"For the avoidance of doubt, spraying of, dancing or marching 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 subsection (1) of this section.

"It shall also be an offence punishable under subsection (1) of this section for any person to hawk, sell or otherwise trade in the naira note or any other note issued by the Bank."

Spraying under the new law includes adorning, decorating anything or any person or any part of any person or the person of another with naira notes or coins.

The bill also includes sprinkling, sticking of the naira notes or coins regardless of the amount, occasion or intent.

It also explained "marching" to include spreading, scattering or littering of any surface with any naira notes or coins and stepping thereon.

When passed into law, it shall be cited as the Central Bank of Nigeria Act 2006 and will repeal the CBN amendment Acts of 1991, 1993, 1997,1998 and 1999.

The bill that was exclusively obtained by our correspondent on Saturday was sent under the seal, signature and stamp of the President and dated April 12, 2006.

Under the CBN's powers to issue guidelines to persons and institutions connected with the performance of its functions, the bill prescribes a fine of N2million for individuals and N10million for institutions that flaunt its rules.

Where any debt due to the bank is considered endangered, the bill empowers the CBN to acquire the property of the debtor and resell it at the earliest suitable time.

It is also empowered under Section 41, subsection 2, to grant loans and other accommodation facilities to any bank facing liquidity problem at such rate and interest and terms it may determine appropriate.

The bill is yet to be listed for first hearing.

THE PUNCH, Monday, May 01, 2006