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Naira mutilation unlawful, weakens economy, says SAN - THE NATION
A Senior Advocate of Nigeria (SAN) Dr. Wahab Shittu, has cautioned against mutilation of the Naira notes, saying it weakens economic confidence.
This, he noted, is why the Central Bank of Nigeria (CBN) has a zero tolerance for the practice.
Dr. Shittu stressed that mutilated notes endanger the economy by weakening trust in the currency with multiplier negative effect on daily transactions.
Dr, Shittu stated this in a paper delivered yesterday at a sensitisation programme organised by the Economic and Financial Crimes Commission (EFCC) and held in Lagos.
He explained that this was why there are CBN guidelines on mutilated notes, fraudulently altered notes, non-spendable notes, including sustained public sensitisation against currency abuse and mutilation
The senior lawyer said the obligations to forestall abuse of notes should not be left in the hands of CBN alone but made a collective responsibility.
“The Economic and Financial Crimes Commission has the responsibility under its enabling act (EFCC Act 2004) to enforce all enactments against economic and financial crimes including the CBN Act 2007.”
He said the way out is to ensure compliance by ensuring that we avoid spraying at parties or engaging in any unwholesome practicesagainst the naira.
“We can appreciate celebrants by depositing our funds into carefully designed bags or ensuring the use of neatly packed envelopes to be presented as gifts during social occasions. We could also transfer directly into designated accounts of celebrants. This way, we can avoid the danger of being arrested or going to jail through either naira abuse or naira mutilation.”, he advised.
Dr Shittu explained that there are CBN guidelines on mutilated notes, fraudulently altered notes, non-spendable notes, including sustained public sensitisation against currency abuse and mutilation.
He said the CBN defines mutilated naira notes as currency that is badly damaged or defaced, to the extent that it is no longer fit for circulation.
He said a naira note is considered mutilated if “it is torn, burnt, defaced, or badly soiled; if its missing essential parts (e.g., part of the note is cut or missing), if it has ink, oil stains, or chemical damage; if it has been washed or overly worn; if its security features are faded or missing.”
He also listed causes of mutilation to include poor handling by the public (folding, squeezing, writing on notes); Environmental exposure (water, fire, chemicals); Storage in damp or unsafe places; deliberate abuse (writing, stapling, spraying at events).among others,
“There is also strong legal backing under the CBN Act 2007 against spraying, writing on, mutilating, or stapling naira notes all of which are punishable under the law. Offenders may face sanctions which include: fines or imprisonment.
“Additionally, institutions found re-cycling mutilated notes can be penalised or blacklisted. CBN is actively engaged in monitoring compliance by withdrawing unfit notes via deposit money banks and replacing them with new ones; ensuring the quality of bank notes in circulation through clean note policy and enforcing compliance against naira abuse and mutilation by entrenching specific provisions under the CBN Act 2007.”
Shittu said the CBN’s stance on naira abuse is stern and unequivocal adding, “the bank regards the spraying of naira notes as a violation of the country’s symbol of sovereignty.
It is important to respect our naira for a stronger economy. Adhering to the nation’s legal obligations requires not just upholding the country’s economic symbol but also showing honour to our naira notes as a way of contributing to a stronger economy.
“It is therefore important to ensure our currency integrity through proper handling and regulations because of the importance of national currency to economic identity and trust. This is because the Central Bank as the regulator of monetary and fiscal policies has a role in maintaining clean currency in circulation.”, he said.
