DAILY TRUST
Against the backdrop of widespread reports on hawking of new naira notes, the Central Bank of Nigeria (CBN) as part of protecting the integrity of the currency and stopping illicit flow, has said it would impose a fine of N150m on Deposit Money Banks (DMBs) aiding such practice.
A circular issued on Friday, December 13, 2024 and signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi issued the warning to DMBs while frowning at the practice.
The Apex Bank has consistently preached against commodification of naira and it has in a November 13, 2024 circular warned against trading in naira notes by those it referred to as unscrupulous agents.
This was coming amidst the cash scarcity in the country which the bank has made efforts to address by reading riot act to DMBs to make cash available for Nigerians.
The CBN Governor, Olayemi Cardoso had at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos recently assured that the bank would continue to “maintain a robust cash offering to meet the country’s needs, particularly during high demand periods such as the festive season and year-end.”
He said, “To address this, we are conducting spot checks across the Deposit Money banks, and we impose penalties on the underperforming institutions. Effective December 1. 2024, customers are encouraged to report any difficulties with joint cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.
“Guidelines will be distributed widely to raise public awareness. We will also urge full regulative compliance by all stakeholders, including mobile money operators and POS agents, to promote digital transaction channels and improve service delivery. I repeat, financial institutions found engaging in malpractices or sabotage will face changing penalties.”
But the cash scarcity has persisted but despite this there have been reports of hawking of mint naira notes.
But the latest circular by the CBN said the apex bank is concerned about the increasing prevalence of mint naira notes being traded by hawkers.
The bank stated that the practice is impeding efficient and effective cash distribution to customers and the general public.
In the earlier circular issued in November, the apex bank stated that any branch of a financial institution found culpable will face a penalty of N150m for the first violation.
Subsequent infractions, the CBN stated, would attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
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…
