The Central Bank of Nigeria (CBN) has announced severe penalties for deposit money banks (DMBs) and financial institutions involved in the illicit disbursement of mint banknotes to currency hawkers. This move aims to curb the increasing prevalence of Naira hawking, which undermines efficient cash distribution and poses risks to public confidence in the financial system.
According to a circular dated December 13, signed by Solaja Olayemi, Acting Director of Currency Operations Department, erring banks will face an initial fine of N150 million, with more severe penalties for repeated violations under the Bank and Other Financial Institutions Act (BOFIA) 2020.¹
The CBN has expressed concern over incidents of banks facilitating the illicit flow of mint Naira notes through direct actions or inactions. To address this, the bank will intensify periodic spot checks at banking halls and ATMs nationwide. CBN officials will also conduct mystery shopping exercises to identify locations where cash hawking activities occur.
In addition to monetary penalties, repeat offenders will face the full weight of the relevant provisions under BOFIA 2020. The CBN has called on all banks to tighten internal controls, particularly in their cash management centres, branches, and teller operations.
This move is part of broader efforts to curb illicit cash activities and ensure a transparent and effective currency distribution framework. The CBN has directed banks to improve cash availability across branches and Automated Teller Machines (ATMs). Dedicated hotlines and email addresses have also been published for the public to report challenges in accessing cash through banks and ATMs.
