Any Deposit Money Bank found guilty of involvement in the illegal flow of mint naira notes to currency hawkers and unscrupulous agents will be sanctioned, the Central Bank of Nigeria, CBN, has declared.
According to the CBN, a fine of N150m per branch will be imposed on any bank found culpable.
Announcing the decision in a circular issued on Friday, December 13, 2024, signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi, the CBN expressed concern over the increasing rate of hawking of naira notes.
The practice, it said, had been impeding efficient and effective cash distribution to customers and the general public.
Referring to an earlier directive dated November 13, 2024, the CBN stressed its determination to address the commodification of the naira.
According to the bank, any branch of a financial institution found culpable would be made to pay a fine N150m for the first violation, while subsequent infractions would attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act, BOFIA, 2020.
The apex bank said in order to ensure compliance, it would increase periodic spot checks in banking halls and ATMs.
It added that mystery shoppers would also be deployed to uncover illicit cash hawking spots across the country.
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The circular reads: “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.
“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.
“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.”
