CBN Threaten to Slam N150 Million Fine on Banks Found Guilty of Hoarding Mint Naira for Cash Hawkers

Israel Adeleke 

In a move aimed at curbing future naira scarcity, the Central Bank of Nigeria (CBN) has announced an updated penalty regime for Deposit Money Banks (DMBs) found engaging in inappropriate cash disbursement practices.

The Apex bank announced the new development via a statement released and signed by the Acting Director of the Currency Operations Department, Solaja Mohammed, said that any commercial bank found guilty of manipulating mint Naira notes exclusively to “cash hawkers” would pay N150 million fine inaddition to other administrative sanctions.

The apex bank explained that the move is aimed at curbing the growing trend of illicit flow of mint Naira notes to currency hawkers and other unscrupulous agents.

OPEN TELEVISION NAIJA (OTN) News reports that the apex bank lamented that this illicit practice disrupts the effective and equitable distribution of cash to bank customers and the general public.

OTN News further reports that in order to address the issue, the CBN has disclosed plans to intensify spot checks at banking halls and ATMs while also conducting undercover inspections at identified cash hawking locations nationwide.

OTN recalls that a circular dated December 13, 2024, with reference number COD/DIR/INT/CIR/001/025, which reaffirmed the CBN’s commitment to tackling the commodification of Naira notes, was released as it followed a similar warning issued by the bank on November 13, 2024.

Expressing concern over the prevalence of the practice, the CBN warned that any Deposit Money Bank or financial institution found guilty of facilitating, aiding, or abetting the illicit flow of mint banknotes would face severe sanctions.

According to the CBN, the initial penalty for such infractions is N150 million per offending branch. For repeat offenses, the full provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 will be applied.

However, to prevent future violations, the apex bank has directed DMBs and financial institutions to strengthen internal controls, enhance cash management protocols, and ensure teller operations comply with regulatory standards.

The Acting Director of the Currency Operations Department, Solaja Mohammed, emphasized the importance of compliance, stating that the CBN will continue to monitor the situation closely and take necessary action to safeguard the integrity of the Naira and promote efficient cash distribution for the benefit of all bank customers and the general public.