The Central Bank of Nigeria (CBN) has introduced stringent measures to combat the illegal flow of mint naira notes, imposing a fine of N150 million per branch on Deposit Money Banks (DMBs) found guilty of aiding currency hawkers and unscrupulous agents.
In a circular issued on December 13, 2024, signed by Acting Director of Currency Operations, Mohammed Olayemi, the apex bank condemned the widespread trading of mint naira notes by hawkers, which disrupts efficient cash distribution to customers and the general public. The CBN warned that violations would attract severe penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
Under the directive, any bank branch facilitating the illegal flow of mint notes will face a N150 million penalty for the first violation. Repeat offenders risk harsher sanctions, including additional fines of up to 10% of the total cash withdrawn from the CBN on the day of the offense. Subsequent breaches will attract an extra 5% penalty, alongside regulatory actions.
The CBN also announced plans to intensify periodic spot checks and mystery shopping at banking halls, ATMs, and suspected cash hawking hotspots across the country to uncover illicit practices.
To prevent exploitation, the CBN urged DMBs to enhance controls, processes, and procedures around their Cash Management Centres, branches, and teller operations. The apex bank emphasized that cash hoarding, diversion, and other practices that impede cash flow violate its Clean Note Policy and will not be tolerated.
Highlighting the importance of responsible cash disbursement, the CBN stated that its measures aim to prevent the commodification of naira notes, ensure efficient distribution, and maintain public trust in the financial system.
With the festive season approaching, the apex bank has heightened its vigilance, reinforcing its commitment to safeguarding the naira and ensuring equitable access to cash for all Nigerians.
