The Central Bank of Nigeria (CBN) has issued a stern warning to banks involved in facilitating the illegal circulation of newly minted naira notes, announcing a hefty fine of N150 million per branch for any such violations.
In a directive signed by Solaja Olayemi, Acting Director of the Currency Operations Department, the CBN raised alarms over the growing involvement of currency hawkers and corrupt economic agents in the unauthorized flow of fresh banknotes.
This illicit activity, the CBN stated, undermines the smooth and equitable distribution of cash to both bank customers and the wider public.
To combat this, the CBN plans to increase its surveillance, conducting spot checks in bank branches, ATMs, and locations known for hawking currency. In addition, it will introduce mystery shoppers to monitor high-risk areas.
The bank made it clear that any financial institution found facilitating or turning a blind eye to the illegal movement of mint naira notes will face an initial fine of N150 million per branch.
Repeated offenses will lead to even stricter penalties under the provisions of the Bank and Other Financial Institutions Act (BOFIA) 2020.
In the wake of these developments, the CBN has urged all banks to tighten their internal controls and enhance their cash management procedures at branches and ATM facilities.
Earlier in November, the central bank had instructed banks to prioritize ATM-based cash withdrawals as a means to streamline distribution and curb the illegal flow of currency.
The CBN also reiterated that any bank found guilty of hoarding, diverting, or otherwise obstructing the proper disbursement of cash will face severe sanctions, including penalties for violating the Clean Note Policy.
 has issued a stern warning to banks involved in facilitating the illegal circulation of newly minted naira notes, announcing a hefty fine of N150 million per branch for any such violations.){kind=link}