Giwa Ihesha
Member
YOU BOUGHT A CAR WITH CASH? OR PAID FOR LAND WITH CASH? YOU MAY WANT TO READ THIS! 
Imagine walking into a car dealership with a bag full of cash.
You count the money.
The seller counts it.
You collect the car.
Transaction completed. Right?
NOT SO FAST.
There is a Nigerian law that specifically deals with cash payments for certain transactions.
Under Section 22 of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, a person in Nigeria must not make or accept cash payment for the purchase or acquisition of:
Landed property
Motor cars and other vehicles
Securities, including stocks, shares and debenturesThe law provides that payment for these transactions should be made through bank transfer or a cheque drawn on a bank in Nigeria.
And here is where it gets even more interesting.
The Supreme Court recently considered this very issue in Aliyu v. Federal Republic of Nigeria.
The case involved a payment made in cash for landed property.
The argument reached the Supreme Court, and the Court upheld the conviction, confirming that accepting prohibited cash payment for landed property can amount to a criminal offence under Section 22.
So that familiar statement:
“Don't worry, just bring the cash. We will sign the agreement.”
may not be as harmless as you think.
LEGAL NOTE: Section 22 is not saying you cannot buy land or a car. The issue is the mode of payment. The law specifically requires bank transfer or a cheque drawn on a Nigerian bank for the transactions covered by the provision.So before you carry millions of naira in cash to complete that land or car transaction, check the law first.
Because sometimes, what looks like a normal business transaction may have a criminal-law consequence.
Would you have thought that paying cash for land or a car could amount to a criminal offence?
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