CBN slams N150m fine on banks releasing new notes to hawkers

The Central Bank of Nigeria (CBN), has threatened to slam ₦150 million fine on Deposit Money Banks found guilty of giving out illegal flow of mint Naira notes to currency hawkers across the country.

This comes after the apex bank addressed recent misinformation about the validity of the old N1000, N500, and N200 banknotes still in circulation.

The recent measure aimed at addressing what the CBN described as a growing problem undermining equitable cash distribution in the country.

In a circular issued on December 13, 2024 and signed by Mohammed J. Olayemi, Acting Director of the Currency Operations Department, the CBN expressed concerns over the situation.

It stressed the increasing prevalence of new naira notes being sold at cash hawking locations, a practice that has drawn sharp criticism from stakeholders.

While referencing an earlier directive from November 13, 2024, the CBN reiterated its commitment in addressing these illicit activities.

The violation by any bank branch will attract the N150 million fine, while subsequent breaches will trigger stricter sanctions in line with the Banks and Other Financial Institutions Act (BOFIA) 2020.

The apex bank also outlined plans for intensified inspections, including surprise audits of banking halls and ATMs, to monitor cash handling practices.

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.”

However, the CBN called on financial institutions to bolster internal controls and cash management protocols across Cash Management Centres, branches, and teller operations to prevent exploitation of their cash distribution systems.

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook