The Central Bank of Nigeria (CBN) has announced a N150 million fine for any bank branch found guilty of supplying mint naira notes to hawkers and unauthorised agents.
The directive was outlined in a circular issued on December 13, 2024, by the acting director of the Currency Operations Department Mohammed Olayemi.
The apex bank raised concerns about the growing prevalence of currency hawking, describing it as a practice that disrupts effective cash distribution to the public.
According to the circular, a first violation will attract a fine of N150 million per branch, with repeat offences leading to stricter penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To enforce the directive, the CBN plans to intensify spot checks at banking halls and ATMs, and deploy mystery shoppers to identify illegal cash hawking operations 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.
