The Central Bank of Nigeria (CBN) has sounded a serious warning to banks involved in the illegal distribution of newly minted naira notes. According to a recent statement, the CBN made it clear that any bank caught helping to funnel these fresh notes into the hands of hawkers or other illegal traders will face a hefty fine of N150 million per branch.
In the circular signed by Solaja Olayemi, the acting director of the CBN’s Currency Operations Department, the regulator expressed deep concern about the growing issue of newly minted banknotes being diverted into the hands of unauthorized individuals. The CBN stated that this practice disrupts the proper flow of cash to the public and creates serious problems for both banks and their customers.
The illegal circulation of freshly minted naira notes is a serious issue. It not only affects the intended circulation of money but also undermines the banking system and disrupts the economy. By diverting cash into the hands of currency hawkers, banks are preventing the general public from having access to cash when they need it the most.
To tackle this problem, the CBN has put in place new measures to monitor and curb these illegal practices. There will be more spot checks in banking halls, at ATMs, and through surprise inspections at known locations for currency hawking. These actions aim to ensure that banks are not allowing the distribution of new notes to unauthorized people.
The warning from the CBN is clear: any bank caught facilitating this illegal activity will be fined N150 million for each branch involved. If this behavior continues, further penalties will be imposed under the Banking and Other Financial Institutions Act (BOFIA) 2020.
The CBN also made it clear that it expects banks to improve their internal controls, particularly when it comes to cash management at branches and teller operations. Banks have been reminded to follow the earlier directives regarding efficient cash
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