₦airaland Forum

The Central Bank of Nigeria (CBN) has taken a firm stance against the illegal flow of freshly minted naira notes to currency hawkers and other unscrupulous agents by imposing a penalty of N150 million per branch on erring Deposit Money Banks (DMBs).

This comes as part of measures to curb the commodification of Naira notes, which the CBN says undermines efficient cash distribution to Nigerians.

In a circular issued on December 13, 2024, and signed by the Acting Director of the Currency Operations Department, Mohammed J. Olayemi, the apex bank expressed dismay at the rising trend of mint Naira notes being sold in cash hawking spots across the country.

The circular referred to an earlier directive dated November 13, 2024, underscoring the CBN’s commitment to addressing this illicit activity.


According to the CBN, the fine will be imposed at the first instance of a violation by any bank branch found culpable of facilitating, aiding, or abetting the flow of mint notes to hawkers.

Subsequent violations will attract even stricter penalties under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

Intensified monitoring and enforcement
To ensure compliance, the CBN announced plans to intensify periodic spot checks in banking halls and ATMs, with a focus on reviewing cash disbursement practices.

The apex bank also intends to conduct mystery shopping exercises to identify cash-hawking hotspots and pinpoint banks complicit in the illegal trade.


In addition to the penalties, the CBN has called on banks to tighten their internal controls, processes, and procedures around cash management, particularly at Cash Management Centres, branches, and teller operations.

The circular read: “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 apex bank urged financial institutions to take proactive steps to ensure that cash distribution mechanisms are not exploited for illicit purposes.

Yankee101:
Withdraw old notes from circulation

zero8zero:
https://nairametrics.com/2024/12/14/cbn-imposes-n150-million-fine-on-banks-for-illicit-mint-naira-transactions/?amp=1

baralatie:
And in the event that cbn staffs are pointed out to be involved🤷?

slex:
Good nice move .

Anyways , people know don't care about mint again for 'owanbe'

Anything you give the celebrant of the occasion now is accepted .

Mandate1:
Nigeria funny.

See how headline far defers from content. One who sees the headline will think a bank has been caught in the process, unfortunately not even one bank has been seen violating or involving in this shenanigans.

Mandate1:
Nigeria funny.

See how headline far defers from content. One who sees the headline will think a bank has been caught in the process, unfortunately not even one bank has been seen violating or involving in this shenanigans.

Yankee101:
Withdraw old notes from circulation

CBN staff too are culpable

Randerl:
Grammar everywhere.

No currency in circulation. POS operators are holding sway, banks are debiting accounts for unfulfilled transactions while network operators collect money for failed bank USSD transfers.

Replication of Pre-2023 election business climate gradually taking over.

id4sho:
People are looking for what to eat now

baralatie:
And in the event that cbn staffs are pointed out to be involved🤷?