The Central Bank of Nigeria (CBN) has announced a ₦150 million fine for Deposit Money Banks (DMBs) found guilty of supplying mint naira notes to currency hawkers. The apex bank issued this directive in a circular signed by Mohammed Olayemi, Acting Director of the Currency Operations Department, on Friday.
The circular followed recent concerns about the unauthorized flow of mint naira notes, which the CBN said impedes effective cash distribution to customers and the public. “The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents,” the statement read, emphasizing that these actions undermine the naira’s value and distribution efficiency.
Under the directive, erring bank branches will face an initial penalty of ₦150 million per violation, with stricter sanctions to follow for repeated infractions under the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN also announced measures to ensure compliance, including increased spot checks in banking halls and ATMs, as well as deploying mystery shoppers to uncover illicit cash hawking activities nationwide.
To curb future violations, the CBN has urged banks to strengthen their internal controls and cash management processes. The directive called on DMBs to tighten oversight at their Cash Management Centres, branches, and teller operations to prevent exploitation for illegal transactions.
This decisive action underscores the CBN’s commitment to safeguarding the naira and ensuring its equitable distribution to Nigerians.
