Distributing Mint Naira Notes to Hawkers Will Attract ₦150M Fine – CBN Warns Banks
To address this issue, the apex bank plans to conduct undercover inspections at identified cash hawking locations across the country
The Central Bank of Nigeria (CBN) has issued a warning to banks regarding the distribution of mint naira notes to currency hawkers, stating that any bank found facilitating this illicit flow will face a fine of ₦150 million per branch.
In a circular signed by Solaja Olayemi, the acting director of the Currency Operations Department, the CBN expressed concern about the circulation of mint banknotes to currency hawkers and unscrupulous economic agents. This practice disrupts the efficient distribution of cash to bank customers and the general public.
To address this issue, the apex bank plans to enhance spot checks at banking halls and automated teller machines (ATMs) to monitor cash disbursements. They will also conduct undercover inspections at identified cash hawking locations across the country.
The circular stated, “Any deposit money bank or financial institution that facilitates, aids, or abets the illicit flow of mint banknotes to currency hawkers will be penalized. In the first instance, the penalty will be ₦150,000,000 (One hundred and fifty million Naira) per offending branch. Subsequent violations will result in the full application of relevant provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.”
The CBN has urged all banks and financial institutions to strengthen their controls, processes, and procedures surrounding their cash management centers, branches, and teller operations.
On November 15, the CBN directed banks to prioritize cash disbursement through ATMs. The bank has commenced spot checks to ensure responsible cash distribution to the public and prevent the disbursement of mint banknotes to individuals engaged in currency hawking.
Banks that distribute naira notes to hawkers will face penalties. Additionally, banks found engaging in cash hoarding, diversion, or any actions obstructing efficient cash distribution—including violations of the Clean Note Policy—will incur appropriate sanctions. Read More
