Central Bank of Nigeria (CBN) has announced a fine of N150 million on Deposit Money Banks (DMBs) found guilty of illegally distributing mint naira notes to currency hawkers across the country.
This move follows the apex bank’s recent clarification on the validity of the old N1000, N500, and N200 banknotes, which remain legal tender in line with a Supreme Court ruling issued on November 29, 2023.
A statement signed by Sidi Ali Hakama, acting director of corporate communications, reaffirmed the validity of these denominations and warned against hoarding.
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In a circular signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi, the CBN expressed concern over the increasing prevalence of mint naira notes being traded by hawkers, describing the practice as impeding efficient and effective cash distribution to customers and the general public.
The circular, which referred to an earlier directive dated November 13, 2024, highlighted the CBN’s determination to address the commodification of the naira. Under the directive, any branch of a financial institution found culpable will face a penalty of N150 million for the first violation.
Subsequent infractions would attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
To ensure compliance, the CBN stated that it would increase periodic spot checks in banking halls and ATMs while deploying mystery shoppers to uncover illicit cash hawking spots across the country.
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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.
