The Central Bank of Nigeria (CBN) has declared that banks caught facilitating the illegal distribution of mint naira notes to hawkers will face a fine of N150 million per branch.
In a circular dated December 13, 2024, and signed by Mohammed Olayemi, Acting Director of the Currency Operations Department, the apex bank expressed concern over the rising trade of mint naira notes by currency hawkers. This practice, according to the CBN, undermines efficient cash distribution to the public.
The circular referenced an earlier directive issued on November 13, 2024, reiterating the CBN’s commitment to curbing the commodification of the naira.
The penalty for a first violation will be N150 million, while subsequent breaches will attract harsher sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To enforce compliance, the CBN announced plans to conduct periodic spot checks in banking halls and ATMs, alongside deploying mystery shoppers to identify illegal cash hawking hotspots nationwide.
The circular read, “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 CBN further urged DMBs to strengthen controls, processes, and procedures around their Cash Management Centres, branches, and teller operations to prevent their systems from being exploited for illegal transactions.
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