The Central Bank of Nigeria (CBN) has imposed a ₦150 million penalty on Deposit Money Banks (DMBs) involved in illegally flowing mint naira notes to currency hawkers.
This action aims to curb the naira’s commodification and ensure efficient cash distribution.
Key Highlights:
- Validity of Old Notes:
- The CBN reaffirmed that the old ₦1000, ₦500, and ₦200 notes remain legal tender as per the Supreme Court ruling of November 29, 2023.
- Concerns Over Mint Naira Sales:
- The apex bank expressed dismay over the sale of mint naira notes, which disrupts proper cash distribution.
- Fines and Sanctions:
- Banks found culpable will face an initial fine of ₦150 million per branch involved.
- Repeat offenses will attract stricter sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020.
- Enforcement Measures:
- Spot Checks: The CBN will conduct regular reviews of banking halls and ATMs.
- Mystery Shoppers: To identify cash hawking hotspots.
- Preventive Measures for Banks:
- Strengthen cash management controls to prevent currency hawkers or illicit actors‘ exploitation.
CBN’s Stand:
In a circular signed by Mohammed Olayemi, Acting Director of Currency Operations, the bank emphasized its commitment to upholding the integrity of the naira.
It warned DMBs to prevent their systems from facilitating such illegal activities and reiterated the importance of proper cash management.
The CBN’s actions underscore its resolve to maintain confidence in the naira while cracking down on practices that undermine its value.