EFCC secures conviction of an Ilorin BDC operator for rejecting the naira and running unlicensed forex business, reinforcing Nigeria’s anti-dollarisation drive.
In a decisive move to tackle the rising use of foreign currencies in local transactions, the Ilorin office of the Economic and Financial Crimes Commission (EFCC) has successfully secured a court conviction against a Bureau De Change operator who flouted national currency and licensing laws..
The Ilorin Zonal Directorate of the commission has secured the conviction of a Bureau De Change (BDC) operator who rejected the naira as legal tender and conducted financial operations without regulatory approval.
The conviction, which falls under the ongoing EFCC dollarisation crackdown, underscores the agency’s determination to protect the integrity of Nigeria’s monetary system and enforce compliance with existing financial laws.
The defendant, 46-year-old Muhammed Inuwa, was found guilty by the Federal High Court sitting in Ilorin, Kwara State.
Justice Abimbola Awogboro delivered the judgment after Inuwa pleaded guilty to a two-count charge brought against him by the EFCC.
Court documents revealed that Inuwa violated Nigeria’s currency laws by refusing to accept the naira during a commercial transaction.
On July 25, 2024, he accepted 100 United States dollars as payment for a traditional garment, popularly known as a jallabiya, and a wristwatch.
This action, the EFCC argued, amounted to a direct breach of Section 20(5) of the Central Bank of Nigeria (CBN) Act, 2007, which makes it illegal to reject the naira for transactions within the country.
The offence forms part of conduct the EFCC has consistently warned against, especially as the nation grapples with economic pressures and exchange rate instability.
According to the anti-graft agency, widespread acceptance of foreign currencies for everyday purchases undermines confidence in the naira and fuels inflationary pressures.
Beyond the currency violation, the EFCC also established that Inuwa had been operating a Bureau De Change business without obtaining the mandatory licence from the Central Bank of Nigeria.
Investigations showed that between July and December 2024, the defendant carried out foreign exchange transactions in Lokoja, Kogi State, without authorisation.
This act contravenes Section 57(5) of the Banks and Other Financial Institutions Act (BOFIA), 2020, which regulates the operation of financial institutions and prescribes penalties for unlicensed activities.
The EFCC noted that unregulated forex businesses pose serious risks to the financial system, including money laundering and illicit capital flows.
During the court proceedings, the defendant admitted to both charges. Following his guilty plea, the prosecuting counsel, Innocent Mbachie, called the investigating officer, Babatunde Olotu, to present the facts of the case.
Olotu detailed how intelligence reports led to the defendant’s arrest and how evidence was gathered to support the charges.
Mbachie subsequently urged the court to convict and sentence Inuwa in line with the plea bargain agreement dated January 15, 2026.
He emphasised that the case aligned with the broader EFCC dollarisation crackdown, which seeks to deter similar violations across the country.
In his judgment, Justice Awogboro found the defendant guilty on both counts.
The court sentenced him to six months’ imprisonment on each charge, with the sentences to run concurrently. The judge, however, provided an option of a fine of ₦250,000 on each count.
Legal observers say the ruling sends a strong message to traders, forex operators, and business owners who routinely price goods and services in foreign currencies.
The judgment reinforces the legal position that the naira remains Nigeria’s only recognised legal tender and must be accepted for transactions conducted within the country.
The EFCC has repeatedly warned that the EFCC dollarisation crackdown will continue, especially against individuals and businesses that undermine monetary policies.
The commission has also urged Nigerians to report cases where sellers insist on payments in dollars or other foreign currencies.
Financial analysts believe that sustained enforcement actions such as this could help restore confidence in the naira and strengthen regulatory oversight of the foreign exchange market.
They argue that tackling illegal BDC operations and currency violations is critical to stabilising the economy and improving transparency in financial transactions.
As Nigeria continues to confront economic challenges, the conviction of Muhammed Inuwa stands as a reminder that regulatory agencies are prepared to use legal instruments to enforce compliance.
The EFCC dollarisation crackdown, observers say, is likely to intensify in the coming months as authorities seek to protect the country’s financial sovereignty.
