CBN Slams N150 Million Fine on Banks Aiding Naira Currency Hawkers
Apex Bank Intensifies Crackdown on Illicit Naira Circulation
The Central Bank of Nigeria (CBN) has escalated its battle against currency mismanagement, imposing a hefty N150 million fine on Deposit Money Banks (DMBs) found complicit in facilitating the illicit flow of mint Naira banknotes to currency hawkers and unscrupulous economic agents.
In a strongly worded circular dated December 13, 2024, the CBN’s acting director of currency operations, Solaja Mohammed J. Olayemi, outlined a strategy to combat the commodification of Nigeria’s national currency. The directive builds upon a previous notice issued on November 13, 2024, and reflects the apex bank’s growing frustration with practices that undermine the integrity of the country’s financial system.
The CBN unequivocally stated that the unauthorized distribution of Naira banknotes not only poses a significant economic threat but also compromises the fundamental principles of efficient cash management. “CBN will continue to intensify periodic spot checks in banking halls and ATMs to review cash payouts to bank customers, as well as conduct mystery shopping at all identified cash hawking spots across the country,” the circular emphasized.
The penalties are designed to be both punitive and deterrent. For the first infraction, each offending bank branch will face a N150 million fine. Subsequent violations will trigger more severe consequences, with the CBN prepared to invoke the full provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The directive mandates all DMBs and financial institutions to enhance their internal controls, processes, and procedures within cash management centers, branches, and teller operations. This approach aims to create a more transparent and accountable currency distribution mechanism.
The action sends a clear message to the financial sector – the commodification of Nigeria’s currency will not be tolerated. It emphasizes the CBN’s commitment to maintaining the integrity of the national currency and ensuring a fair, transparent financial ecosystem.
