The Central Bank of Nigeria (CBN) has announced plan to slam a fine of N150m on any deposit money bank found guilty of releasing mint naira notes to currency hawkers and agents.
The apex bank which has raised eyebrows on the illegality, disclosed this in a circular issued on Friday, signed by the Acting Director of Currency Operations Department, Mohammed Olayemi.
According to the circular, the apex bank is worried about the increasing prevalence of mint naira notes being traded by hawkers, a practice the bank described as impeding efficient and effective cash distribution to customers and the general public.
The circular, which referred to an earlier directive dated November 13, 2024, also disclosed that the apex bank was poised to address the commodification of the naira.
With the directive, any branch of a financial institution found guilty will face a penalty of N150m for the first violation, after which stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 shall be applied if found guilty again.
To ensure compliance, CBN also announced that it would increase periodic spot checks in banking halls and ATMs.
It shall also deploy mystery shoppers to uncover illicit cash hawking spots across the country.
“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 circular said.
“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,” it added.
“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 N150,000,000.00 (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 deposit money banks to strengthen controls, processes, and procedures around their Cash Management Centres, branches and teller operations to prevent their systems from being exploited for illegal transactions.
Kindly share this report
