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CBN Fines Naira Supply Hawkers N150m, Warns Banks Over Illegal Mint Naira Circulation
The CBN warned that banks engaging in cash hoarding, diversion, or any other actions that impede the proper distribution of currency
Abuja, Nigeria- The Central Bank of Nigeria (CBN) has warned banks against the illegal diversion of newly minted naira notes, threatening penalties of up to N150 million per branch for any institution found culpable.
In a circular signed by Solaja Olayemi, Acting Director of the CBN’s Currency Operations Department, the apex bank expressed alarm over the increasing diversion of freshly printed banknotes to currency hawkers and unauthorized agents, disrupting cash accessibility for bank customers and the public.
The CBN outlined measures to tackle the issue, including surprise inspections of banking halls, ATMs, and undercover monitoring at known currency hawking locations. These efforts aim to ensure proper distribution and accountability for mint naira notes.
“Banks engaging in such illicit practices will face immediate penalties,” the circular read, adding that repeat violations will attract stricter sanctions under the Banking and Other Financial Institutions Act (BOFIA) 2020.
“In this regard, any erring deposit money banks or financial institutions that is culpable of facilitating, aiding or abetting, by direct actions or inactions, 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,” the circular reads.
However the CBN urged banks to enhance their internal controls, particularly regarding their cash management systems at branches and during teller operations.
The bank also reiterated its call for improved efficiency in cash disbursement, reminding financial institutions of its earlier directive on November 15, which prioritizes ATM cash withdrawals.
Meanwhile, the CBN warned that banks engaging in cash hoarding, diversion, or any other actions that impede the proper distribution of currency, including violations of the Clean Note Policy, will face severe penalties.
