CBN Fines Banks ₦150 Million for Supplying Mint Naira Notes to Currency Hawkers

CBN Fines Banks ₦150 Million for Supplying Mint Naira Notes to Currency Hawkers

CBN Fines Banks ₦150 Million for Supplying Mint Naira Notes to Currency Hawkers

The Central Bank of Nigeria (CBN) has introduced  measures to curb the illegal trade of naira notes, imposing a ₦150 million penalty on Deposit Money BanksBanks (DMBs) caught supplying mint naira notes to currency hawkers.

In a statement released by the Acting Director of Corporate Communications, Sidi Ali Hakama, the CBN reaffirmed its commitment to ensuring effective cash distribution across the country. This decision follows reports of widespread hoarding and the illegal sale of naira notes, which the bank considers a significant barrier to efficient cash flow for citizens and businesses alike.

The announcement comes shortly after the Supreme Court’s November 29, 2023 ruling, which upheld the status of old ₦1000, ₦500, and ₦200 notes as legal tender.

The apex bank, in a circular signed by Acting Director of Currency Operations, Mohammed Olayemi, expressed alarm over the growing sale of mint notes by currency hawkers. The CBN warned that any DMB branch found complicit in such activities would face severe consequences, including an initial ₦150 million fine. Subsequent violations would attract harsher penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.

The circular, which referenced an earlier directive issued on November 13, 2024, outlined the bank’s strategies for combating the commodification of naira notes. These include periodic spot checks at banking halls and ATMs, as well as deploying “mystery shoppers” to identify and address naira hawking hotspots nationwide.

To enforce compliance, the CBN urged financial institutions to strengthen internal controls at their Cash Management Centres, branches, and teller operations. The bank emphasized that such measures are critical in preventing the exploitation of banks for illegal cash-related activities.

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The CBN further stated its determination to protect the naira from misuse, “CBN will continue to intensify periodic spot checks and mystery shopping at all identified cash hawking spots to deter these illicit activities. Any financial institution found aiding such practices will face the full weight of the law.”

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