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The Central Bank of Nigeria (CBN) has introduced a stringent penalty of ₦150 million on Deposit Money Banks (DMBs) found guilty of supplying mint naira notes to currency hawkers.
Naija News reports that this move is part of the apex bank’s efforts to curb the illegal trade and ensure the effective distribution of cash to the public.
The announcement follows the CBN’s clarification regarding the continued use of old ₦1000, ₦500, and ₦200 notes as legal tender.
A statement from Acting Director of Corporate Communications, Sidi Ali Hakama, reaffirmed that these denominations remain valid following a Supreme Court ruling on November 29, 2023.
The CBN also cautioned against the hoarding of cash.
In a circular signed by Acting Director of Currency Operations, Mohammed Olayemi, the CBN expressed concern over the rising prevalence of mint naira notes being sold by hawkers.
The bank described the act as a serious obstacle to efficient cash flow and access for citizens and businesses.
The circular, which referenced an earlier directive issued on November 13, 2024, revealed the CBN’s intensified efforts to address the illicit trade of the naira.
The directive warns that any DMB branch found culpable will face an initial fine of ₦150 million. Subsequent violations would attract even stricter sanctions, in line with the Banks and Other Financial Institutions Act (BOFIA) 2020.
To ensure compliance, the CBN pledged to increase spot checks at banking halls and ATMs. It also announced plans to deploy “mystery shoppers” to identify and expose locations where naira hawking is taking place.
The circular read, “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.
“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.
“In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes shall be penalised at first instance ₦150,000,000.00 (One hundred and fifty million Naira) only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020.”
The CBN further urged financial institutions to strengthen their internal controls, processes, and procedures at Cash Management Centres, branches, and teller operations.
This, the bank said, would prevent banks from being exploited for illegal cash-related transactions.
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