The Central Bank of Nigeria (CBN) has announced stringent penalties for deposit money banks (DMBs) and financial institutions involved in the inappropriate disbursement of mint banknotes to currency hawkers and economic agents who profit from the illicit trade.
Erring banks will now face an initial fine of N150 million, with more severe penalties for repeated violations under the Bank and Other Financial Institutions Act (BOFIA) 2020.
In a circular dated 13 December by the Acting Director, Currency Operations Department, Solaja Olayemi, the CBN expressed dismay at the increasing prevalence of Naira hawking, which undermines efficient cash distribution and poses risks to public confidence in the financial system.
The bank cited incidents of banks facilitating the illicit flow of mint Naira notes through direct actions or inactions.
Read Also:
The bank said it will intensify periodic spot checks at banking halls and ATMs nationwide. CBN officials will also conduct mystery shopping exercises to identify locations where cash hawking activities occur.
The CBN emphasised that, in addition to monetary penalties, repeat offenders would face the full weight of the relevant provisions under BOFIA 2020.
It called on all banks to tighten internal controls, particularly in their cash management centres, branches, and teller operations.
The move comes as part of broader efforts to curb illicit cash activities and ensure a transparent and effective currency distribution framework.
Nigerians have recently faced growing frustration over their inability to access sufficient cash from banks. As a cash-dependent economy, many livelihoods and economic activities rely solely on cash transactions, which have now been severely disrupted.
The CBN on 4 December directed banks to improve cash availability across branches and Automated Teller Machines (ATMs).
It also published dedicated hotlines and email addresses for the public to report challenges in accessing cash through banks and ATMs.
(Premium Times)
