The CBN has imposed a ₦150 million fine per branch on banks involved in the illegal circulation of mint naira notes. This enforcement measure, coupled with monitoring and stricter penalties, aims to curb currency hawking and strengthen efficient cash distribution in Nigeria.
The Central Bank of Nigeria (CBN) has imposed a ₦150 million fine on deposit money banks (DMBs) found guilty of facilitating or enabling the illegal circulation of freshly minted naira notes to currency hawkers. The move is part of efforts to address the commodification of naira notes, which disrupts efficient cash distribution.
In a circular dated December 13, 2024, signed by Mohammed J. Olayemi, Acting Director of the Currency Operations Department, the CBN expressed concern over the increasing sale of mint notes at hawking locations. The circular also emphasized an earlier directive issued in November, reaffirming the bank’s commitment to tackling this issue.
The penalty applies per branch for first-time violations, with stricter sanctions anticipated for repeat offenders under the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN has announced plans to intensify enforcement through spot checks at banks and ATMs, alongside mystery shopping to identify hawking hotspots and complicit institutions. Banks are urged to tighten internal controls and review cash management processes to prevent misuse.
