The Central Bank of Nigeria (CBN) has imposed a fine of ₦150 million on Deposit Money Banks (DMBs) found guilty of facilitating the illegal distribution of newly minted naira notes to currency hawkers across the country.
This move follows recent clarifications from the apex bank regarding the validity of the old N1000, N500, and N200 banknotes, which remain legal tender in accordance with a Supreme Court ruling issued on November 29, 2023. The CBN emphasized that these denominations are still valid and warned against hoarding.
In a statement signed by Sidi Ali Hakama, the Acting Director of Corporate Communications, the CBN addressed the growing issue of mint naira notes being traded by hawkers, which it described as obstructing the efficient and effective distribution of cash to the public. The CBN’s circular, signed by Mohammed Olayemi, Acting Director of the Currency Operations Department, reiterated the importance of tackling the commodification of the naira.
According to the directive, any financial institution found guilty of facilitating the illegal flow of mint notes will face a fine of ₦150 million for the first offense. Repeat violations will lead to stricter sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020. To ensure compliance, the CBN announced plans to intensify periodic spot checks in banking halls and ATMs, alongside deploying mystery shoppers to identify illegal cash hawking activities.
The circular further urged DMBs to strengthen controls and improve procedures at their Cash Management Centres, branches, and teller operations to prevent exploitation of their systems for illegal transactions.
