The Central Bank of Nigeria (CBN) has imposed a fine of ₦150 million on Deposit Money Banks (DMBs) involved in supplying mint naira notes to currency hawkers
This action is part of the CBN’s broader strategy to combat the illegal trade of naira notes and ensure efficient cash distribution to the public.
The penalty comes shortly after the CBN reaffirmed that old ₦1000, ₦500, and ₦200 notes remain legal tender, following a Supreme Court ruling on November 29, 2023.
In a statement by Acting Director of Corporate Communications, Sidi Ali Hakama, the CBN also warned against cash hoarding.
A circular signed by Acting Director of Currency Operations, Mohammed Olayemi, expressed concern over the growing sale of mint naira notes by hawkers, which the CBN described as a major hindrance to effective cash circulation for citizens and businesses.
Referring to a previous directive issued on November 13, 2024, the CBN emphasized its increased efforts to curb the illegal trade of naira notes. It warned that any DMB branch caught facilitating this practice would face an initial fine of ₦150 million, with further violations leading to even stricter penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To ensure compliance, the CBN plans to conduct more spot checks at banking halls and ATMs, and will deploy “mystery shoppers” to identify and address locations involved in naira hawking.
The circular stated, “The CBN has noted with dismay the prevalence of illicit flows of mint banknotes to currency hawkers and other unscrupulous economic agents, thus impeding efficient cash distribution to banks’ customers and the general public.”
“CBN will continue to intensify periodic spot checks at banking halls and ATMs to review cash payouts, as well as mystery shopping at all identified cash hawking spots across the country.”
“Any erring deposit money banks or financial institutions facilitating the illegal flow of mint banknotes to currency hawkers will be penalized with an initial fine of ₦150,000,000.00 per erring branch, with subsequent violations attracting full penalties under BOFIA 2020.”
The CBN also urged financial institutions to strengthen their internal controls, processes, and procedures at Cash Management Centres, branches, and teller operations to prevent illegal cash activities.
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