CBN to fine banks releasing Naira notes to hawkers N150m

By Seun Ibiyemi

The Central Bank of Nigeria (CBN) has vowed to impose a N150 million fine per branch on any bank releasing naira notes to currency hawkers in the country.

The CBN gave the warning in a circular signed by its Acting Director of Currency Operations, Mohammed Olayemi, over the weekend in Abuja.

The apex bank decried the prevalence of mint naira notes traded by hawkers along highways and social gatherings nationwide.

The CBN promised to increase periodic spot checks in banking halls and Automated Teller Machine (ATM) outlets as well as deploy mystery shoppers to uncover illicit cash hawking spots across the country.

The circular read, “The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify Naira banknotes, thus impeding efficient and effective cash distribution to banks’ customers and the general public.

“CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country.

“In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes shall be penalised at first instance N150,000,000.00 (One hundred and fifty million Naira) only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020.”