Lagos Jeweller Bags 4-Year Jail Term for Rejecting Naira, Accepting Dollars for Luxury Bracelet

 

A Federal High Court in Ikoyi, Lagos, presided over by Justice Alexander Owoeye, has handed a four-year prison sentence to Uzondu Precious Chimaobi, a businessman and owner of a jewelry store, for his refusal to accept the Nigerian Naira as legal tender.

The conviction, delivered on Tuesday, April 15, 2025, marks a significant enforcement of the Central Bank of Nigeria (CBN) Act of 2007, which prohibits the rejection of the Naira for transactions within Nigeria. Chimaobi, who owns Unlimited Jewellers Limited situated at Atlantic Mall, Chevron Drive, Lekki, Lagos, was found guilty of accepting payment in foreign currency—specifically U.S. Dollars—for the sale of a luxury Cartier diamond bracelet.

The Economic and Financial Crimes Commission (EFCC), Lagos Zonal Directorate 1, brought Chimaobi before the court on February 5, 2025, charging him on two counts related to the unlawful refusal to accept Nigeria’s official currency. The key incident in question occurred on December 10, 2024, when Chimaobi sold a Cartier bracelet tagged at $6,000 to an undercover EFCC operative for $5,700.

According to court documents and testimonies, Chimaobi refused to transact in Naira despite being approached by a supposed customer—who was in fact part of a covert EFCC operation—disguised to investigate allegations against the company. The witness, PW1 Owolabi Oyarekhua Jude, an EFCC operative, explained in court that intelligence had earlier been received about the company’s illegal practice of tagging and selling items in U.S. Dollars.

“The operation confirmed that Unlimited Jewellers Limited, operated by the defendant, was actively conducting sales in foreign currency, flouting Nigerian financial regulations,” said Jude, under examination by the prosecution counsel, H.U. Kofarnaisa.

The EFCC operative further recounted how the undercover agent was issued a receipt in U.S. Dollars after making the payment, reinforcing the allegations of the company's non-compliance with the CBN Act.

Initially, Chimaobi pleaded not guilty, prompting a full trial. However, at the resumed hearing on April 14, 2025, the defendant reversed his plea to guilty. In response, the prosecution prayed the court to rely on the earlier evidence presented and also tendered the defendant’s statement and supporting exhibits, all of which were admitted into the record by the court.

In delivering judgment the following day, Justice Owoeye found Chimaobi guilty on both counts. On the first count, the judge imposed a fine of N50,000. On the second and more severe count, Chimaobi was sentenced to four years in prison, with an option of a N600,000 fine. In addition, the Cartier diamond bracelet used in the transaction was ordered forfeited to the Federal Government of Nigeria.

Legal analysts say the conviction underscores the growing seriousness with which regulatory authorities are clamping down on violations of monetary policy, particularly in light of the country’s ongoing efforts to stabilize the Naira and reduce reliance on foreign currencies for domestic transactions.

The EFCC, in a brief post-trial statement, reaffirmed its commitment to upholding financial laws and warned other businesses against flouting Nigeria’s monetary regulations.

Chimaobi’s sentencing serves as a stark reminder to business owners and high-end retailers across the country: the Naira remains Nigeria’s only legal tender, and defiance of this principle could come at a hefty legal price.