The Central Bank of Nigeria (CBN) has imposed a N150 million fine on Deposit Money Banks found culpable of facilitating the illegal distribution of mint naira notes to currency hawkers across the country.
This was disclosed in a statement by the acting Director of Corporate Communications of the CBN, Sidi Ali Hakama, in Abuja. The move follows the apex bank’s efforts to address misinformation regarding the validity of the old N1000, N500, and N200 banknotes still in circulation.
According to the statement, the denominations remain valid legal tender, as affirmed by a Supreme Court ruling issued on November 29, 2023. The CBN reiterated its stance against hoarding the notes, encouraging the public to continue using them for transactions.
In a circular signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi, on Friday, the CBN raised concerns about the rising trade of mint naira notes by hawkers. The apex bank stated that this practice hampers efficient and effective cash distribution to customers and the general public.
READ ALSO: INEC proposes computer-generated voting slips, advocates for electoral reforms
The circular, which referred to an earlier directive dated November 13, 2024, underscored the CBN’s determination to combat the commercialization of the naira.
“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,” the circular read.
Under the new directive, any branch of a financial institution found guilty of facilitating the illegal flow of mint notes will face a N150 million fine for the first violation. For subsequent infractions, stricter sanctions will be applied under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The apex bank announced plans to step up its enforcement measures by conducting periodic spot checks at banking halls and ATMs, as well as deploying mystery shoppers to uncover cash hawking spots across the country.
“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 statement said.
The CBN warned that any financial institution found aiding, abetting, or facilitating the flow of mint notes to currency hawkers would be penalized according to the new guidelines, with a fine of N150 million per erring branch for the first violation. Repeat offenders will face more severe penalties under the relevant provisions of BOFIA 2020.
