CBN imposes N150m fine on banks aiding currency hawking

fair Female Hand Holding brown Purse With Nigerian naira notes, hand removing money out of purse isolated on white background

The Central Bank of Nigeria (CBN) has imposed a fine of N150 million on Deposit Money Banks (DMBs) found complicit in aiding and abetting the illicit flow of mint Naira banknotes to currency hawkers and unscrupulous economic agents.

This is revealed in a circular issued by Solaja Mohammed J. Olayemi, acting director of currency operations, dated December 13, 2024, with reference number COD/DIR/INT/CIR/001/025.

The circular referenced an earlier notice issued on November 13, 2024, and expressed the CBN’s dismay at the continued commodification of Naira banknotes, which the apex bank stated undermines efficient cash distribution to bank customers and the general public.

The practice, according to the CBN, is not only detrimental to the economy but also compromises the integrity of Nigeria’s currency management system.

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

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The statement further noted that any erring financial institution found culpable would face stringent penalties, including a fine of N150 million per offending branch for the first infraction. For subsequent violations, the CBN warned that the full weight of the relevant provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 would be applied.

An official of the CBN, speaking anonymously, said, “This measure is not merely punitive but also a deterrent to discourage the unwholesome practices that have continued to plague our currency management system. We are committed to ensuring that the Naira is treated with the dignity it deserves.”

To curb these practices, the CBN has directed all DMBs and financial institutions to enhance controls, processes, and procedures within their cash management centers, branches, and teller operations. The apex bank noted that these measures are vital to ensuring the effective and efficient flow of currency within the Nigerian economy.

A banker, who spoke on condition of anonymity, acknowledged the directive but pointed out some challenges. “The move by the CBN is commendable, but banks also need to be supported with better systems to trace and monitor cash flows effectively. It’s a joint responsibility,” the banker noted.

This action comes as part of the CBN’s ongoing effort to sanitise the financial system and reinforce its zero-tolerance stance against practices that degrade the Naira and disrupt equitable access to cash by citizens.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.