Banks Leaking Mint Naira Notes To Hawkers Will Face N150m Fine – CBN

The Central Bank of Nigeria (CBN) has announced strict measures to address the illegal supply of mint naira notes to currency hawkers.

Any Deposit Money Bank (DMB) found involved in this act will face an initial fine of ₦150 million, with even harsher penalties for repeat offenses under the Banks and Other Financial Institutions Act (BOFIA) 2020.

A statement from Sidi Ali Hakama, Acting Director of Corporate Communications, confirmed that old ₦1000, ₦500, and ₦200 notes remain valid as legal tender following a Supreme Court ruling on November 29, 2023. The CBN also warned against cash hoarding, emphasizing its commitment to ensuring cash accessibility for citizens and businesses.

The bank, through Mohammed Olayemi, Acting Director of Currency Operations, expressed concern over the increasing sale of mint notes by hawkers, describing it as a major impediment to effective cash distribution. Olayemi noted that this practice disrupts the cash flow system and impacts both businesses and individuals.

In a circular, the CBN pledged to intensify spot checks in banking halls and ATMs to ensure compliance. The circular also mentioned the deployment of “mystery shoppers” to expose locations where currency hawking occurs. It read, “CBN will continue to intensify periodic spot checks in banking halls/ATMs to review cash payouts to customers, as well as mystery shopping to identified cash hawking spots across the country.”

The bank’s circular warned, “Any erring deposit money bank or financial institution facilitating or aiding the illicit flow of mint banknotes to hawkers or unscrupulous agents shall be penalized at first instance ₦150,000,000.00 per branch and, subsequently, face the full weight of BOFIA 2020.”

Additionally, the CBN urged financial institutions to enhance internal controls at Cash Management Centres and branches. Strengthening these processes, the bank stated, would help prevent banks from being exploited for illegal transactions involving cash.

These measures underscore the CBN’s determination to regulate cash flow and curb the commodification of the naira, ensuring efficient currency circulation for the public.

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