The Central Bank of Nigeria (CBN) has imposed a ₦150 million fine on Deposit Money Banks found guilty of facilitating the illegal flow of mint naira notes to currency hawkers nationwide.
This decision follows the apex bank’s recent clarification on the validity of old N1000, N500, and N200 banknotes.
In a statement signed by Sidi Ali Hakama, Acting Director of Corporate Communications, the CBN reiterated that these denominations remain legal tender, as affirmed by the Supreme Court ruling of November 29, 2023, while cautioning against hoarding.
In a circular issued on Friday by Mohammed Olayemi, Acting Director of the Currency Operations Department, the CBN expressed concern over the increasing trade of mint naira notes by hawkers.
The apex bank described the practice as a significant obstacle to the efficient and equitable distribution of cash to the public.
Referring to an earlier directive dated November 13, 2024, the circular emphasized the CBN’s commitment to curbing the commodification of the naira.
It stipulated that any financial institution branch found guilty would face a fine of ₦150 million for the first violation, with subsequent infractions attracting more severe penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To enforce compliance, the CBN announced plans to conduct periodic spot checks in banking halls and ATMs while deploying mystery shoppers to identify illegal currency hawking operations across the country.
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 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 enhance their controls, processes, and procedures within Cash Management Centres, branches, and teller operations to safeguard their systems against exploitation for illicit transactions.