The Central Bank of Nigeria (CBN) has imposed a hefty penalty of ₦150 million on Deposit Money Banks (DMBs) caught supplying mint naira notes to currency hawkers.
According to reports, this measure is part of the apex bank’s efforts to combat the illegal trade of naira notes and ensure the efficient distribution of cash to the public.
The announcement comes shortly after the CBN reaffirmed that old ₦1000, ₦500, and ₦200 notes remain legal tender, following a Supreme Court ruling on November 29, 2023.
In a statement issued by Acting Director of Corporate Communications, Sidi Ali Hakama, the CBN also cautioned against the hoarding of cash.
In a circular signed by Acting Director of Currency Operations, Mohammed Olayemi, the bank expressed concern over the increasing sale of mint naira notes by hawkers. The CBN described the practice as a major barrier to effective cash circulation for citizens and businesses.
The circular, referencing an earlier directive issued on November 13, 2024, outlined the CBN’s intensified efforts to tackle the illegal trade of naira notes. It warned that any DMB branch found complicit would face an initial fine of ₦150 million, with subsequent violations attracting even harsher penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To enforce compliance, the CBN announced plans to conduct more spot checks at banking halls and ATMs. Additionally, it will deploy “mystery shoppers” to uncover and address locations involved in naira hawking.
The circular read, “The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify Naira banknotes, thus impeding efficient and effective cash distribution to banks’ customers and the general public.
“CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country.
“In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes shall be penalised at first instance ₦150,000,000.00 (One hundred and fifty million Naira) only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020.”
The CBN also called on financial institutions to enhance their internal controls, processes, and procedures at Cash Management Centres, branches, and teller operations.
According to the bank, these measures are necessary to prevent exploitation of banks for illegal cash-related activities.
