The Central Bank of Nigeria (CBN) has slapped a hefty N150 million fine on Deposit Money Banks (DMBs) found guilty of facilitating the illegal flow of mint naira notes to currency hawkers across the country. This move follows growing concerns over the distribution of uncirculated currency notes that have been sold to hawkers, undermining proper cash circulation.
In a statement released by the acting Director of Corporate Communications, Sidi Ali Hakama, the CBN emphasized the ongoing issue of unauthorized mint naira notes being circulated by hawkers. This development follows the apex bank’s efforts to clear up confusion regarding the continued validity of the old N1000, N500, and N200 notes. The CBN reaffirmed that these denominations remain legal tender, following a Supreme Court ruling on November 29, 2023.
The CBN’s circular, signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi, noted the damaging effects of hawking mint notes, which it claims hinders the smooth distribution of cash to the public. The practice, according to the CBN, disrupts the efficient circulation of currency, creating a barrier for customers seeking to access cash.
The circular further warned that any financial institution found guilty of such illegal activities would face a penalty of N150 million for the first violation. Subsequent infractions would incur stricter sanctions under the Banks and Other Financial Institutions Act (BOFIA), 2020.
To strengthen enforcement, the CBN announced an increase in spot checks at banking halls and ATMs and the deployment of "mystery shoppers" to uncover illicit cash hawking activities across the nation.
The statement also called on the financial sector to align with the apex bank's directives to prevent the commodification of the naira and to ensure the smooth operation of Nigeria’s monetary system.
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