The Central Bank of Nigeria (CBN) has announced a penalty of N150 million for banks found releasing mint naira notes to hawkers, as part of efforts to curb the growing practice.
This was disclosed in a circular issued on Friday, 13th December 2024, signed by Mohammed Olayemi, Acting Director of the Currency Operations Department. The document referenced an earlier directive from 13th November 2024, reiterating the apex bank’s commitment to tackling the commodification of the naira.
According to the circular, the CBN plans to ramp up periodic spot checks at banking halls and ATMs while deploying mystery shoppers to identify illegal cash hawking spots across the country.
The bank expressed concern over the rising trend of mint naira notes being traded by hawkers, a practice it described as hindering the efficient distribution of cash to customers and the general public.
Under the directive, any branch of a financial institution found guilty of such violations will face an initial penalty of N150 million, with stricter sanctions for subsequent infractions as outlined in the Banks and Other Financial Institutions Act (BOFIA) 2020.
The circular stated: “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.”
The apex bank also urged Deposit Money Banks to strengthen controls, processes, and procedures at their Cash Management Centres, branches, and teller operations to prevent their systems from being exploited for illegal transactions.
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