CBN Warns Banks Against Selling New Notes, Sets N150m fine

The Central Bank of Nigeria has told Deposit Money Banks that they risk a fine of N150 million if they sell new Naira notes to currency hawkers.

The threat by the CBN was contained in a circular by the Acting Director of the Currency Operations Department, Mohammed Olayemi. The circular, on Friday, said the CBN was concerned about the increasing prevalence of mint naira notes being traded by hawkers.

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.

It said any branch of a financial institution found culpable will face a penalty of N150 million 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.

The circular said: “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.”