The Central Bank of Nigeria (CBN) has imposed a ₦150 million fine on Deposit Money Banks (DMBs) found supplying newly minted naira notes to currency hawkers. This action is part of the CBN’s ongoing efforts to curb the illegal trade of naira notes and ensure proper cash distribution to the public.
This announcement follows the CBN’s confirmation that the old ₦1000, ₦500, and ₦200 notes remain legal tender after a Supreme Court ruling on November 29, 2023.
In a statement issued by Acting Director of Corporate Communications, Sidi Ali Hakama, the CBN also warned against the hoarding of cash.
A circular signed by Acting Director of Currency Operations, Mohammed Olayemi, expressed concern over the growing sale of mint naira notes by hawkers, calling it a significant obstacle to effective cash circulation for citizens and businesses.
The circular, which references a directive issued on November 13, 2024, emphasized the CBN’s intensified efforts to combat the illegal trade of naira notes. It warned that any DMB branch found guilty would face an initial fine of ₦150 million, with repeated violations leading to even stricter penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To enforce compliance, the CBN plans to conduct more spot checks at banking halls and ATMs, as well as deploy “mystery shoppers” to identify and address locations involved in naira hawking.
The circular stated: “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 penalized 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 urged financial institutions to strengthen their internal controls, processes, and procedures at Cash Management Centres, branches, and teller operations to prevent the misuse of banks for illegal cash-related activities.
