THE Central Bank of Nigeria (CBN) said it will impose a N150 million fine per branch on deposit money banks (DBM) found guilty of illegally supplying mint naira notes to currency hawkers and unauthorised agents.
The apex bank disclosed this in a circular issued on Friday, December 13, 2024, signed by the acting director of the Currency Operations Department, Mohammed Olayemi.
The circular expressed the CBN’s worry over the growing trend of hawkers trading mint naira notes, which the bank stated disrupts efficient cash distribution to customers and the public.
Referring to an earlier directive issued on November 13, 2024, the apex bank reaffirmed its commitment to tackling the commercialisation of the naira.
“Any financial institution branch found guilty will incur a N150 million fine for the first offense,” the directive noted.
The apex bank further cautioned that repeat violations will result in harsher penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To enforce compliance, the apex bank announced plans to increase random spot checks in banking halls and automated teller machines (ATMs), as well as using mystery shoppers to identify illegal cash hawking locations nationwide.
“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,”it said.
“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,” the apex bank added.
It further stressed that 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 also called on deposit money banks (DMBs) to improve controls, processes, and procedures within their Cash Management Centres, branches, and teller operations to safeguard against exploitation for illegal transactions.
Additionally, the CBN reminded banks about its ongoing mystery shopping activities and spot checks, which are designed to prevent the misuse of naira notes and ensure proper cash distribution, particularly as the festive season draws near.
The apex bank noted that the policy directive is geared towards preventing the flow of newly minted banknotes to hawkers and ensure efficient cash distribution to the public.
It further disclosed that banks found guilty of seizing cash from unauthorised hawkers will face fines, with repeat offenders subject to additional penalties, and any actions hindering cash flow will lead to sanctions for violating the Clean Note Policy.
The ICIR had reported that the CBN had announced from December 1, customers facing challenges withdrawing cash from bank branches or ATMs should report the issues directly to the apex bank.
Fatimah Quadri is a Journalist and a Fact-checker at The ICIR. She has written news articles, fact-checks, explainers, and media literacy in an effort to combat information disorder.
She can be reached at sunmibola_q on X or fquadri@icirnigeria.org