CBN imposes N150m fine on banks issuing new notes to hawkers
The Central Bank of Nigeria (CBN) has imposed a N150 million fine on Deposit Money Banks found guilty of supplying mint naira notes to currency hawkers.
In a statement issued by Sidi Ali Hakama, the acting Director of Corporate Communications, the CBN clarified that the old N1000, N500, and N200 notes remain valid legal tender, following a Supreme Court ruling on November 29, 2023. The bank condemned the sale of mint naira notes, citing its negative impact on effective cash distribution.
According to a circular signed by Acting Director of Currency Operations, Mohammed Olayemi, financial institutions guilty of such practices will face a N150 million penalty for a first offense, with stricter sanctions for repeat violations under the BOFIA Act 2020. The CBN also announced plans to enforce compliance through increased spot checks, ATM monitoring, and the use of mystery shoppers to identify illegal currency hawking activities.
The circular reads, “The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify Naira banknotes, thus impeding efficient and effective cash distribution to banks’ customers and the general public.
“CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country.
“In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the 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 statement read
