Abuja, Dec. 14, 2024 – The Central Bank of Nigeria (CBN) is to impose ₦150 million fine on banks aiding illegal flow of mint naira notes to currency hawkers across the country.
The CBN said the measure is part of its moves to check commodification of naira notes which had undermined efficient cash distribution to Nigerians.
The apex bank announced the new decision in a statement signed by Sidi Ali Hakama, its Acting Director of Corporate Communications.
The CBN said it was concerned about the increasing prevalence of mint naira notes being traded by hawkers.
It referred to a circular issued on December 13, 2024, and signed by the Acting Director of the Currency Operations Department, Mohammed J. Olayemi, where the apex bank expressed dismay at the rising trend of mint naira notes being sold in cash hawking spots across the country.
It described the practice as impeding efficient and effective cash distribution to customers and the general public.
With the new directive, any branch of any financial institution found culpable will face a penalty of N150 million for the first violation.
Subsequent infractions will attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
To ensure compliance, the apex bank said it would increase periodic spot checks in banking halls and ATMs, while deploying mystery shoppers to uncover illicit cash hawking spots across the country.
The circular reads: “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 N150,000,000.00 (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 advised banks to strengthen their controls, processes, and procedures around their cash management centres, branches, and teller operations to prevent their systems from being exploited for illegal transactions. (GBN)
