CBN to Fine Banks N150m for Illegal Naira Flow

The Central Bank of Nigeria (CBN) has announced a new policy aimed at curbing the illegal trade of mint naira notes, slapping a fine of N150 million on any Deposit Money Bank (DMB) branch found guilty of facilitating the practice. The announcement, made in a circular issued on Friday, December 13, 2024, follows growing concerns over the increasing prevalence of naira notes being sold by currency hawkers and other unscrupulous agents.

The circular, signed by the Acting Director of the CBN’s Currency Operations Department, Mohammed Olayemi, emphasized that this illegal trade is disrupting the efficient distribution of currency to the public. The CBN described such activities as impeding the smooth circulation of cash, which is crucial for economic transactions.

The new policy reiterates a directive issued by the CBN on November 13, 2024, which seeks to prevent the commodification of the naira. According to the circular, any branch found guilty of aiding or abetting the illicit flow of mint naira notes will face an initial fine of N150 million. Subsequent violations will attract harsher penalties, in accordance with the Banks and Other Financial Institutions Act (BOFIA) of 2020.

To enforce this policy, the CBN stated it would ramp up its monitoring efforts. This will include more frequent spot checks at banking halls and ATMs, as well as the deployment of “mystery shoppers” to uncover illicit currency hawking operations across the country.

The apex bank’s move signals a heightened commitment to preserving the integrity of the naira and ensuring its proper circulation throughout Nigeria’s economy.