CBN Fines Banks ₦150 Million Over Naira Note Hawking

The Central Bank of Nigeria (CBN) has imposed a fine of ₦150 million on Deposit Money Banks (DMBs) found guilty of supplying mint naira notes to currency hawkers.

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EKO HOT BLOG reports that this move is part of the apex bank’s strategy to combat the illegal trade of naira notes and ensure proper cash circulation across the country.

A circular issued by the Acting Director of Currency Operations, Mohammed Olayemi, expressed concern over the increasing availability of mint naira notes on the streets. The bank described this practice as a significant obstacle to efficient cash distribution.

The CBN’s circular warned that any branch of a DMB implicated in such activities would face an initial fine of ₦150 million, with repeat violations attracting harsher penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.

To enforce compliance, the CBN plans to intensify spot checks at banking halls and ATMs while deploying “mystery shoppers” to identify hawking hotspots. This initiative aligns with its earlier directive issued on November 13, 2024.

In a related development, the Acting Director of Corporate Communications, Sidi Ali Hakama, reiterated that old ₦1000, ₦500, and ₦200 notes remain valid legal tender, in line with the Supreme Court’s ruling of November 29, 2023.

The CBN urged banks to strengthen internal controls to prevent unauthorized access to cash for illegal transactions. It also emphasized the need for proper management at Cash Management Centres and branches.

The apex bank pledged to continue monitoring cash operations to curb the commodification of naira notes and improve cash accessibility for citizens and businesses.