The Central Bank of Nigeria (CBN) has taken decisive action against Deposit Money Banks found guilty of distributing new naira notes to currency hawkers.
In a statement released by Sidi Ali Hakama, the Acting Director of Corporate Communications, the apex bank announced a hefty fine of N150 million for each offending branch.
This move comes in response to widespread misinformation regarding the validity of old N1000, N500, and N200 banknotes.
The CBN clarified that these denominations remain legal tender, as upheld by a Supreme Court ruling on November 29, 2023. "The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers," stated Hakama, emphasizing the impact on efficient cash distribution.
The CBN's circular, signed by Mohammed Olayemi, Acting Director of the Currency Operations Department, highlighted the bank's commitment to curbing the commodification of the naira.
The directive warned that repeat offenses would attract stricter penalties under the Banks and Other Financial Institutions Act (BOFIA), 2020.
To enforce compliance, the CBN plans to intensify spot checks in banking halls and ATMs, alongside deploying mystery shoppers to uncover illegal cash hawking spots nationwide.
"Any erring deposit money banks or financial institutions shall be penalized at first instance N150,000,000.00," the statement read, underscoring the CBN's resolve to maintain efficient currency circulation.
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