Nigeria: CBN Alerts Public on Circulation of Counterfeit Notes Amid Lingering Naira Scarcity

The Central Bank of Nigeria (CBN) issued a statement on Friday, drawing attention to the presence of counterfeit banknotes in circulation, particularly in higher denominations. The banking regulator highlighted instances of these counterfeit notes being used for transactions in food markets and commercial centers across major cities in the country.

This announcement coincides with continued complaints from bank depositors regarding cash shortages, both through Automated Teller Machines (ATMs) and over-the-counter transactions in banks. Despite the CBN’s directives for banks to issue and accept old and redesigned naira banknotes, the scarcity of the naira persists.

Observations made during the week at various banks and ATMs revealed cash payment rationing over the counter, with withdrawal limits imposed on ATMs. For example, in Lagos at GTB, Gate Ejigbo, non-bank customers were observed to be receiving only N5,000 from ATMs, while bank customers could withdraw up to N20,000. Similarly, at Eco Bank, Gate Ejigbo, non-bank customers received up to N10,000, while bank customers could withdraw as much as N20,000.

The CBN emphasized the illegality of counterfeiting banknotes, citing Section 20(4) of the CBN Act (2007) as amended, which prescribes a minimum prison term of five years for anyone found guilty of falsifying or counterfeiting legal tender in Nigeria. The central bank assured that it is actively collaborating with relevant security and financial agencies to apprehend counterfeiters and confiscate fake naira banknotes.

In response to the situation, the CBN urged the public to report any suspected individuals dealing in counterfeit naira notes to the nearest police station, a branch of the CBN, or through contactcbn@cbn.gov.ng.

Furthermore, the banking regulator called on Deposit Money Banks, financial institutions, Bureau de Change operators, and the general public to heighten vigilance and adopt necessary precautionary measures to curb the acceptance and distribution of counterfeit notes. As a proactive measure, the CBN encouraged the adoption of alternative payment modes and electronic channels for day-to-day transactions to mitigate the risk of spreading counterfeit banknotes.