The Macro - Economic Consequences and Regulatory Challenges of Currency Counterfeiting In Nigeria

Currency otherwise regarded as paper money and coins constitutes a potent economic lubricant in Nigeria and all over the world. Its role as legal tender in promoting transactions in goods and services as well as the overall progress of the economy is anchored on the fact that the Nigerian economy, at the moment, is grossly cash-driven. However, it has been observed in recent times that counterfeit currencies (especially the higher denomination bank notes) are very much in circulation in Nigeria without adequate safeguard by the regulatory body to mitigate their circulation. Bearing in mind the grave macroeconomic consequences associated with currency counterfeiting, it becomes the concern of this paper to point out some of the these grave consequences on the Nigerian society as a wake-up call on both individuals and the regulatory body to rise to the challenge of combating this economic insurgence. The paper employed a narrative approach to xray, the history of Nigerian currency as well as the legal framework for currency management/currency counterfeiting in Nigeria. Among the recommendations offered towards preventing the menace of currency counterfeiting are that, adequate sensitization programme be floated on both the print and electronic media to educate the public on counterfeit offences, installation of note sorting machines in all bank branches and big business centres to fish out counterfeit notes as well as the creation of special judicial tribunal to promptly handle and punish all currency counterfeiting cases.