Nigeria Central Bank's Ultimatum: Desist from Naira Hoarding or Risk Penalties, Cautions Banks and POS Services

As the cash scarcity stemming from the redesign of three naira notes lingers, Nigerians find themselves grappling with the aftermath of a policy implemented nearly a year ago. In response to the ongoing challenges, the Central Bank of Nigeria (CBN) has sounded the alarm on collusion between Deposit Money Banks (DMBs) and Point-Of-Sale (PoS) operators, attributing the issue to the dwindling availability of cash and disruptions in the seamless circulation of the naira within the country.

In a statement released on Thursday, CBN spokesperson Sidi Ali Hakama expressed the apex bank's concern over reported cases of collusion, deeming them detrimental to the economy. The CBN is actively investigating these instances, emphasizing its commitment to maintaining a stable economic environment. The statement warned both banks and PoS operators to refrain from engaging in such activities, emphasizing that stringent sanctions would be applied to those found culpable.

Encouraging the public to explore alternative payment channels, the CBN urged vigilance and prompt reporting of any unauthorized activities, including capping and hoarding, by banks or PoS agents. The developments underscore the ongoing struggle to mitigate the impact of the currency redesign and uphold the integrity of Nigeria's financial ecosystem.