The Central Bank of Nigeria (CBN) has imposed a penalty of ₦150 million on Deposit Money Banks (DMBs) found culpable of facilitating the illegal distribution of mint naira notes to currency hawkers nationwide.
This decision follows efforts by the apex bank to address widespread misinformation regarding the continued validity of the old N1000, N500, and N200 banknotes.
PulseNets learned that the CBN reaffirmed these denominations remain legal tender, as upheld by a Supreme Court ruling delivered on November 29, 2023, and cautioned against hoarding.
In a circular issued on Friday and signed by Mohammed Olayemi, Acting Director of the Currency Operations Department, the CBN expressed concerns over the increasing prevalence of mint naira notes being sold by hawkers.
The apex bank described the practice as obstructing efficient cash distribution to customers and the general public.
The circular, referencing a prior directive dated November 13, 2024, highlighted the CBN’s commitment to ending the commercialization of the naira.
PulseNets learnt that the directive specifies a ₦150 million fine for the first violation by any branch of a financial institution, with subsequent breaches attracting stricter sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To enforce compliance, the CBN announced plans to intensify spot checks at banking halls and ATMs while deploying mystery shoppers to uncover illicit cash hawking hotspots across the nation.
The circular, obtained by PulseNets, 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.
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“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.”
Additionally, PulseNets reports that the apex bank urged DMBs to bolster their controls, processes, and procedures across Cash Management Centres, branches, and teller operations to prevent their systems from being exploited for illegal activities.
