The Central Bank of Nigeria (CBN) has announced plans to penalize Deposit Money Banks (DMBs) that are found to be facilitating the hawking of Naira notes.
In a memo issued to DMBs on Friday in Abuja, the Acting Director of the Currency Operations Department, Mr. Solaja Olayemi, outlined the bank’s strategy to combat this issue.
Olayemi indicated that the CBN would conduct “mystery shopping” exercises and periodic “spot checks” to investigate cash distribution and disbursement practices among DMBs, aiming to trace the origins of Naira notes involved in hawking.
These initiatives are designed to monitor and prevent the distribution of newly minted banknotes to cash hawkers, thereby discouraging the misuse of the Naira. Additionally, they aim to ensure that DMBs engage in responsible and efficient cash disbursement to the public.
To clarify the consequences, Olayemi stated that DMBs linked to cash seized from hawkers would face a fine equivalent to 10 percent of the total value of cash withdrawn on the day the seized funds were taken from the CBN. Subsequent violations would incur an additional penalty of five percent.
He further warned that DMBs involved in cash hoarding, diversion, or any practices that obstruct effective cash distribution—such as violations of the Clean Note Policy—would face appropriate sanctions.
As the festive season approaches, Olayemi urged DMBs to implement robust internal controls to ensure responsible disbursement and accountability for mint banknotes. He emphasized the importance of enhancing public access to cash, encouraging banks to prioritize distribution through Automated Teller Machines (ATMs).
In conjunction with relevant law enforcement agencies, the CBN plans to intensify spot checks and mystery shopping initiatives to uphold responsible cash distribution and prevent the abuse of the Naira during this busy period.
