The Central Bank of Nigeria (CBN) has imposed a ₦150 million penalty per branch on Deposit Money Banks (DMBs) found engaging in the illegal flow of freshly minted Naira notes to currency hawkers and unscrupulous agents.
This was disclosed in a circular dated December 13, 2024, signed by Mohammed J. Olayemi, Acting Director of the Currency Operations Department.
According to the CBN, the fine will apply to the first instance of a violation by any branch found to have facilitated, aided, or abetted the distribution of mint notes to hawkers.
Subsequent violations will attract stricter penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
In the circular, the CBN expressed concern over the rising trend of cash hawking, where mint Naira notes are openly sold in markets and public spaces. It noted that this practice undermines the efficient distribution of cash across the country and erodes public confidence in the financial system.
To enforce compliance, the CBN announced plans to conduct periodic spot checks in banking halls and ATMs, focusing on cash disbursement practices. Additionally, mystery shopping exercises will be undertaken to identify cash-hawking hotspots and expose banks involved in the illicit trade.
The circular also referred to an earlier directive issued on November 13, 2024, reiterating the apex bank’s commitment to eliminating the commodification of Naira notes.
Beyond imposing fines, the CBN has urged financial institutions to strengthen their internal controls, processes, and procedures around cash management. It emphasized the need for banks to tighten operations at Cash Management Centres, branches, and teller points to prevent the exploitation of cash distribution mechanisms.
“This directive underscores the CBN’s resolve to address the illegal activities undermining efficient cash distribution and ensure the integrity of the Nigerian financial system,” the circular stated.
Credit: thenationonlineng.net
