Justice Alexander Owoeye of the Federal High Court in Ikoyi, Lagos, on Tuesday convicted and sentenced businessman Uzondu Chimaobi to four years in prison for refusing to accept the naira as legal tender in a commercial transaction.
Chimaobi was arraigned by the Lagos Zonal Directorate 1 of the Economic and Financial Crimes Commission (EFCC) on February 5, 2025, over a two-count charge stemming from a dollar-based jewelry sale.
One of the charges read: “That you, Precious Chimaobi Uzondu, on the 10th of December 2024, in Lagos, within the jurisdiction of this Honourable Court, refused to accept Naira (Nigeria legal tender) by accepting the sum of $5700 (Five Thousand Seven Hundred USD) as a means of payment for a purchase of a cartier diamond bracelet with serial number (12345678) and you, thereby, committed an offence contrary to Section 20 of the Central Bank of Nigeria Act, 2007.”
Initially, Chimaobi pleaded not guilty, prompting a full trial. The prosecution called its first witness, EFCC operative Owolabi Oyarekhua Jude, who offered details of the investigation.
Led in evidence by prosecuting counsel H.U. Kofarnaisa, Jude told the court: “The Commission received intelligence on the activities of a jewellery company called Unlimited Jewellers Limited, whose owner is one Uzondu Precious Chimaobi.”
He explained further: “The Company, which deals in jewellery at Atlantic Mall, Chevron Drive, Lekki, Lagos, intentionally tags and sells its products in Dollars as against the CBN Act, 2007, which stipulates Naira as the only legal tender in Nigeria.”
According to him, “Subsequently, a covert operation was carried out, where an undercover operative of the Commission disguised as a customer to purchase a Diamond Nail bracelet that was tagged $6000 and bought it for $5700.
“The company refused to receive Naira and demanded Dollars as a means of payment. The payment was made, and the receipt was issued in dollars. The owner of the company was arrested and taken to the Commission’s office.”
At the resumed hearing on April 14, 2025, Chimaobi reversed his initial plea and opted to plead guilty to the charges.
Following the plea change, Kofarnaisa asked the court to rely on the testimony earlier given and to admit the accompanying evidence.
Consequently, “Kofarnaisa prayed the court to rely on the evidence earlier given by the investigating officer and admit the same in convicting the defendant.”
The court also admitted Chimaobi’s statement and additional evidence submitted by the prosecution.
Justice Owoeye adjourned proceedings to April 15 for judgment. Upon resumption, he delivered the ruling, finding Chimaobi guilty on both counts.
“Justice Owoeye then adjourned till Tuesday, April 15, 2025, for ruling. Delivering judgment, they found the defendant guilty and gave him an option of a fine of N50,000 (Fifty Thousand Naira) on count one.”
The judge sentenced the businessman to four years’ imprisonment, offering an alternative fine of N600,000 on the second count.
Furthermore, his Cartier diamond wristwatch was ordered forfeited to the federal government.
Chimaobi’s conviction stems from his refusal to accept naira in a transaction where he instead received $5,700 for a Cartier diamond bracelet, violating the Central Bank Act’s stipulation that naira remains the only legal tender in Nigeria.
