The Central Bank of Nigeria (CBN) has imposed a fine of N150 million on Deposit Money Banks found guilty of illegally distributing mint naira notes to currency hawkers.
The decision, aimed at curbing the commodification of the naira, was announced in a statement by Sidi Ali Hakama, the acting Director of Corporate Communications at the apex bank.
The announcement comes after the CBN clarified misinformation surrounding the validity of old N1000, N500, and N200 notes, reaffirming their status as legal tender in line with a Supreme Court ruling issued on November 29, 2023. The bank emphasized that hoarding and trading the naira impede efficient cash distribution.
In a circular signed by the acting Director of Currency Operations, Mohammed Olayemi, on Friday, the CBN expressed concern over the increasing prevalence of hawkers selling mint naira notes, which it described as detrimental to the country’s financial system.
The circular warned that any branch of a financial institution found complicit in this illegal activity would face an initial penalty of N150 million, with stricter sanctions for subsequent violations under the Banks and Other Financial Institutions Act (BOFIA), 2020.
The directive also outlined measures to ensure compliance, including enhanced periodic inspections of banking halls and ATMs, as well as deploying mystery shoppers to identify illicit cash hawking spots nationwide.
“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 statement read.
The apex bank further reiterated its commitment to maintaining the integrity of the naira and ensuring equitable cash distribution to Nigerians.
“CBN will continue to intensify periodic spot checks in banking halls and ATMs to review cash payouts to banks’ customers and mystery shopping to all identified cash hawking spots across the country,” the statement added.
