CBN Fines Banks N150m for Aiding Currency Hawking

The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) against enabling the illegal sale of mint naira notes to currency hawkers, imposing a penalty of N150 million for each offending branch involved in such activities.

In a circular issued by Solaja Mohammed J. Olayemi, Acting Director of Currency Operations, on December 13, 2024, the CBN expressed concern over the persistent commodification of naira banknotes. The circular, referenced COD/DIR/INT/CIR/001/025, highlighted that this practice undermines the efficient distribution of cash to the public and compromises the integrity of Nigeria’s currency management system.

The CBN emphasized that it would intensify inspections of banking halls, ATMs, and identified currency hawking locations nationwide to monitor cash disbursements. According to the circular, the first infraction will attract a fine of N150 million per branch, while repeated violations will result in stricter sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020.

“This measure is not just punitive but also preventive,” said a CBN official who spoke anonymously. “The goal is to deter practices that undermine the dignity of the naira and disrupt its efficient flow in the economy.”

The CBN has also directed all banks and financial institutions to strengthen internal controls and processes within their cash management centers, branches, and teller operations. These steps aim to ensure better currency circulation and mitigate the activities of unscrupulous economic agents.

A banker, speaking on condition of anonymity, commended the directive but noted operational challenges. “While the CBN’s move is laudable, there’s a need for enhanced systems to monitor and trace cash flows effectively. Both the regulator and financial institutions must work together to achieve this goal,” the banker said.

This initiative is part of the CBN’s broader effort to sanitize the financial system, uphold the integrity of the naira, and ensure equitable access to cash for all Nigerians.