The Central Bank of Nigeria (CBN) has announced plans to impose a ₦150 million fine per branch on Deposit Money Banks (DMBs) found facilitating the illegal circulation of mint naira notes to currency hawkers and unscrupulous agents.
The directive, issued in a circular on Friday, December 13, 2024, was signed by Mohammed Olayemi, the Acting Director of the Currency Operations Department.
The CBN expressed concern over the rising trend of mint naira trading, describing it as a practice that disrupts the effective distribution of cash to the public.
The apex bank highlighted its commitment to combating the commodification of the naira and warned of harsher sanctions for repeat offenders under the Banks and Other Financial Institutions Act (BOFIA) 2020.
In addition to the financial penalties, the CBN announced plans to intensify spot checks at banking halls and ATMs and deploy mystery shoppers to identify and shut down illicit cash hawking operations.
The circular stated:
“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.
“Any erring deposit money bank or financial institution facilitating this practice shall be penalized at first instance with N150 million per branch and, for subsequent violations, face the full weight of BOFIA 2020.”
The CBN urged banks to tighten controls and procedures in their Cash Management Centres, branches, and teller operations to prevent exploitation for illegal transactions.