CBN Slams N150 Million Fine on Banks for Illicit Naira Note Distribution
The Central Bank of Nigeria (CBN) has taken decisive action against banks involved in the illegal distribution of freshly minted Naira notes to currency hawkers.
In a circular issued on December 13, 2024, the CBN imposed a hefty fine of N150 million per branch on erring Deposit Money Banks (DMBs).
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.”
This move aims to curb the growing practice of commodifying Naira notes, which the CBN believes hinders efficient cash distribution to the public. The apex bank has expressed deep concern over the increasing number of mint Naira notes being sold at cash hawking spots across the country.
To enforce compliance, the CBN will intensify monitoring efforts, including periodic spot checks of banking halls and ATMs, as well as mystery shopping exercises to identify and penalize banks involved in the illicit trade. The CBN has also urged banks to strengthen their internal controls and procedures to prevent the misuse of cash distribution mechanisms.
The CBN’s strict stance on this issue underscores its commitment to maintaining the integrity of the Naira and ensuring its smooth circulation within the economy.
