CBN Imposes Fine On Banks Aiding Currency Hawking
The Central Bank of Nigeria (CBN) has imposed a fine of N150 million on Deposit Money Banks (DMBs) found complicit in aiding and abetting the illicit flow of mint Naira banknotes to currency hawkers and unscrupulous economic agents.
This is revealed in a circular issued by Solaja Mohammed J. Olayemi, acting director of currency operations, dated December 13, 2024, with reference number COD/DIR/INT/CIR/001/025.
The circular referenced an earlier notice issued on November 13, 2024, and expressed the CBN’s dismay at the continued commodification of Naira banknotes, which the apex bank stated undermines efficient cash distribution to bank customers and the general public.
The practice, according to the CBN, is not only detrimental to the economy but also compromises the integrity of Nigeria’s currency management system.
The circular stated, “CBN will continue to intensify the periodic spot checks to the banking halls and ATMs to review cash payouts to banks’ customers, as well as mystery shopping at all identified cash hawking spots across the country.”
The statement further noted that any erring financial institution found culpable would face stringent penalties, including a fine of N150 million per offending branch for the first infraction. For subsequent violations, the CBN warned that the full weight of the relevant provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 would be applied.
An official of the CBN, speaking anonymously, said, “This measure is not merely punitive but also a deterrent to discourage the unwholesome practices that have continued to plague our currency management system. We are committed to ensuring that the Naira is treated with the dignity it deserves.”
To curb these practices, the CBN has directed all DMBs and financial institutions to enhance controls, processes, and procedures within their cash management centers, branches, and teller operations. The apex bank noted that these measures are vital to ensuring the effective and efficient flow of currency within the Nigerian economy.
A banker, who spoke on condition of anonymity, acknowledged the directive but pointed out some challenges. “The move by the CBN is commendable, but banks also need to be supported with better systems to trace and monitor cash flows effectively. It’s a joint responsibility,” the banker noted.
This action comes as part of the CBN’s ongoing effort to sanitise the financial system and reinforce its zero-tolerance stance against practices that degrade the Naira and disrupt equitable access to cash by citizens.
