By 
The Central Bank of Nigeria (CBN) has announced its resolve to impose severe penalties on Deposit Money Banks (DMBs) found facilitating the hawking of Naira notes. In a memo issued on Friday in Abuja, Mr. Solaja Olayemi, Acting Director of the CBN’s Currency Operations Department, outlined measures to curb the abuse of the Naira and enforce compliance with cash disbursement policies.
As part of its crackdown, the CBN plans to implement “mystery shopping” and periodic “spot checks” to trace the sources of mint Naira notes found in the hands of hawkers. These actions aim to monitor and eliminate practices that contribute to the illegal trade and abuse of the national currency.
Deterrent Measures and Penalties
The CBN emphasized that banks identified as sources of seized hawked Naira cash will face stiff penalties.
“For clarity, any DMB traced to cash seized from hawkers will be fined 10% of the total value of the cash withdrawn on the day the seized cash was issued by the CBN,” Olayemi stated. “Repeat offenses will attract an additional 5% penalty for every subsequent violation.”
Furthermore, banks engaging in cash hoarding, diversion, or activities contrary to the Clean Note Policy will face further sanctions.
Promoting Responsible Cash Disbursement
To ensure transparency and accountability, the CBN urged banks to strengthen internal controls around the distribution of mint notes, especially as the festive season approaches, when cash demand typically increases.
“To enhance access to cash, we strongly advise banks to prioritize distribution through Automated Teller Machines (ATMs),” Olayemi said.
Collaborative Enforcement Actions
In collaboration with law enforcement agencies, the CBN will intensify efforts to prevent Naira abuse during the yuletide period. Increased spot checks and covert monitoring will ensure compliance and responsible cash management by financial institutions.
This initiative underscores the CBN’s commitment to safeguarding the integrity of the Naira and ensuring efficient cash distribution to the public, reinforcing trust in the financial system.
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