Releasing New Notes To Hawkers, Others Now Attracts N150m fine, CBN Tells Banks

The New Diplomat
Writer

Ad

Dangote snubs NUPENG, begins CNG trucks roll out

By Abiola Olawale Dangote Petroleum Refinery company, owned by Africa's richest man, Aliko Dangote, is set to proceed with the roll-out of over 4,000 Compressed Natural Gas (CNG)-powered trucks today, Monday, September 15, 2025. The company said the initiative is part of a massive N720 billion investment in logistics infrastructure that aims to streamline fuel…

Trump and Starmer Set to Seal Sweeping Nuclear Energy Deal

Britain and the United States are set to sign a sweeping agreement to accelerate nuclear power development during U.S. President Donald Trump’s state visit this week, marking what Keir Starmer described as the start of a “golden age of nuclear.” The accord, known as the Atlantic Partnership for Advanced Nuclear Energy, is designed to streamline licensing…

‘Your verdict ungodly,’ INEC fires back at Catholic bishops over 2023 election criticism

...Nigeria is sinking, insists Bishops By Obinna Uballa The Independent National Electoral Commission (INEC) has rejected a scathing assessment of the 2023 general elections by the Catholic Bishops’ Conference of Nigeria (CBCN), describing the clerics’ position as “unfair” and “ungodly.” Reacting to comments by CBCN President and Archbishop of Owerri, Lucius Ugorji, who declared that…

Ad

By Kolawole Ojebisi

The Central Bank of Nigeria on Friday said it has resolved to take punitive measures against deposit money banks and others found guilty of mint naira notes violations and infractions bordering on trading of Naira notes to currency hawkers and unscrupulous agents.

This is as the apex bank announced that it will slam a fine of N150m per branch on banks found culpable of such offence.

The apex bank disclosed this in a circular issued on Friday, December 13, 2024, signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi.

According to the circular, the CBN expressed concerns over the increasing prevalence of mint naira notes being traded by hawkers, a practice the bank described as impeding efficient and effective cash distribution to customers and the general public.

The circular, which referred to an earlier directive dated November 13, 2024, highlighted the apex bank’s determination to address the commodification of the naira.

Under the directive, any branch of a financial institution found culpable will face a penalty of N150m for the first violation.

Subsequent infractions, the CBN warned, would attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

To ensure compliance, the apex bank stated that it would increase periodic spot checks in banking halls and ATMs while deploying mystery shoppers to uncover illicit cash hawking spots across the country.

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 CBN further urged DMBs to strengthen controls, processes, and procedures around their Cash Management Centres, branches, and teller operations to prevent their systems from being exploited for illegal transactions.

Recall that the CBN had earlier issued a stern warning to Deposit Money Banks over cash hoarding and diversion, stating that such actions will attract stiff penalties.

In a circular dated November 13, 2024, signed by the Acting Director of Currency Operations, Mohammed Olayemi, and released by the CBN, the apex bank announced intensified measures to ensure efficient and transparent cash disbursement.

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp