THE Central Bank of Nigeria (CBN) has imposed a fine of ₦150 million on Deposit Money Banks that have been found guilty of illegally supplying mint naira notes to currency hawkers throughout the country.
This action follows the CBN’s response to recent misinformation regarding the acceptance of old N1000, N500, and N200 banknotes that are still in use.
A statement from Sidi Ali Hakama, the acting director of corporate communications, confirmed that these banknotes remain valid legal tender, in accordance with a Supreme Court ruling from November 29, 2023, and cautioned against hoarding.
After this clarification, the CBN, in a circular issued by Mohammed Olayemi, the Acting Director of the Currency Operations Department, expressed concern about the increasing illegal trade of mint naira notes by hawkers. The CBN stated that such actions disrupt the efficient distribution of cash to customers and the public.
The circular referenced an earlier directive from November 13, 2024, emphasizing the CBN’s commitment to combatting the commodification of the naira.
Under this directive, any branch of a financial institution found guilty will incur a penalty of ₦150 million for the first violation. The CBN indicated that subsequent violations would result in harsher penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To promote compliance, the CBN plans to increase random spot checks in banking halls and ATMs, as well as employ mystery shoppers to identify illegal cash hawking operations across the country.
The circular stated, “The CBN has expressed concern over the widespread illegal distribution of mint banknotes to currency hawkers and other unethical economic agents, which hinders efficient cash distribution to bank customers and the general public.
“The CBN will enhance periodic spot checks in banking halls and ATMs to monitor cash distributions and will deploy mystery shoppers to identified cash hawking sites across the nation.
“In this context, any Deposit Money Bank or financial institution found to be facilitating or enabling the illegal flow of mint banknotes to currency hawkers will face an initial penalty of ₦150 million (one hundred and fifty million naira) for each offending branch, with stricter penalties applied for additional violations under the provisions of BOFIA 2020.”
The CBN also urged Deposit Money Banks to strengthen their controls, processes, and procedures at their Cash Management Centres, branches, and teller operations to prevent exploitation for illegal transactions.
