The Central Bank of Nigeria (CBN) has announced a fine of ₦150 million on Deposit Money Banks (DMBs) found guilty of facilitating the illegal flow of mint naira notes to currency hawkers.
This development follows the apex bank’s recent efforts to address public misinformation regarding the validity of old ₦1,000, ₦500, and ₦200 banknotes, which remain legal tender in line with the Supreme Court ruling of November 29, 2023.
In a statement signed by Sidi Ali Hakama, Acting Director of Corporate Communications, the CBN emphasized its commitment to ensuring the proper circulation of naira notes and warned against hoarding.
In a circular issued on Friday by Mohammed Olayemi, Acting Director of the Currency Operations Department, the CBN expressed concern over the rising trend of hawking mint naira notes, describing it as a practice that disrupts efficient cash distribution.
The circular referenced an earlier directive dated November 13, 2024, underscoring the CBN’s resolve to curb the commodification of the naira. The apex bank announced that any branch of a financial institution found complicit in this practice would face a ₦150 million penalty for the first offense. Subsequent violations would attract more severe sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020.
“The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents who commodify naira notes, thereby impeding effective cash distribution to bank customers and the public,” the circular stated.
To enforce compliance, the CBN said it would increase periodic spot checks at banking halls and ATMs and deploy mystery shoppers to identify cash hawking hotspots nationwide.
The apex bank also directed DMBs to tighten controls at Cash Management Centres, branches, and teller operations to prevent illegal transactions, ensuring their systems are not exploited for unauthorized purposes.
This move reinforces the CBN’s commitment to maintaining the integrity of Nigeria’s currency and ensuring its seamless distribution for public use.