The Central Bank of Nigeria (CBN) has announced a ₦150 million fine for Deposit Money Banks (DMBs) found guilty of facilitating the illicit distribution of newly minted naira notes to currency hawkers. This decision comes as part of the CBN’s ongoing efforts to curb the illegal flow of mint naira notes into the hands of unauthorized traders.

In a circular issued on Friday, signed by Mohammed Olayemi, Acting Director of the CBN’s Currency Operations Department, the central bank expressed concern over the growing prevalence of mint naira notes being sold by hawkers, which disrupts the proper distribution of cash to customers. Olayemi stated that the practice undermines the efficient circulation of currency to the public.

“The CBN has observed with concern the illegal flow of mint banknotes to currency hawkers and other unscrupulous economic agents who commodify Naira banknotes, thus hindering effective cash distribution to customers and the general public,” Olayemi said.

The CBN further announced plans to intensify efforts to monitor cash distribution, including periodic spot checks at banking halls and ATMs, as well as mystery shopping at identified hotspots for currency hawking across the country.

The circular emphasized that any DMBs or financial institutions found to be involved in facilitating the illegal flow of mint banknotes would face an initial fine of ₦150 million per branch. Subsequent violations would lead to more severe penalties under the relevant provisions of the Bank and Other Financial Institutions Act (BOFIA) 2020.

To prevent further violations, the CBN has urged DMBs to tighten their internal controls, processes, and procedures around their Cash Management Centres, branches, and teller operations to ensure their systems are not exploited for illegal activities.