The Central Bank of Nigeria (CBN) imposes a fine of N150 million per branch on Deposit Money Banks (DMBs) involved in the illegal flow of freshly minted naira notes to currency hawkers and other unauthorized agents. This move aligns with the CBN’s effort to curb the commodification of naira notes and ensure efficient cash distribution to Nigerians.
In a circular dated December 13, 2024, signed by Mohammed J. Olayemi, Acting Director of the Currency Operations Department, the CBN expresses concern over the increasing sale of mint naira notes in cash hawking spots across the country. The circular builds on a previous directive issued on November 13, 2024, reaffirming the apex bank’s determination to address this issue.
The CBN states that the N150 million fine applies to any bank branch found facilitating, aiding, or abetting the illegal flow of mint notes to unauthorized agents. It warns that subsequent violations will attract stricter penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN intensifies efforts to ensure compliance by conducting periodic spot checks in banking halls and ATMs to assess cash disbursement practices. It also plans mystery shopping activities to identify cash-hawking hotspots and pinpoint banks complicit in the illegal trade.
The circular urges financial institutions to strengthen their internal controls around cash management, particularly at Cash Management Centres, branches, and teller operations, to prevent exploitation.
The circular states:
“The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous agents that commodify naira banknotes, thus impeding efficient cash distribution to banks’ customers and the general public.
“Any deposit money bank or financial institution found culpable will face an immediate penalty of N150 million per erring branch. Subsequent violations will attract the full weight of relevant provisions of BOFIA 2020.”
The CBN emphasizes its Clean Note Policy, which seeks to maintain the integrity of the naira by ensuring proper handling and circulation. It warns banks against cash hoarding and diversion, especially during high-demand periods like the festive season.
By working closely with law enforcement agencies, the CBN reinforces its commitment to restoring order in cash distribution and preserving public confidence in the financial system.
 imposes a fine of N150 million per branch on Deposit Money Banks (DMBs) involved in the illegal flow of freshly minted naira notes to currency hawkers and other unauthorized agents. This move aligns with the CBN’s effort to curb the commodification of naira notes and ensure efficient cash distribution to Nigerians.){kind=link}