The Central Bank of Nigeria (CBN) has announced a fine of N150 million for commercial banks that founded and aided in the illicit flow of mint naira notes to currency hawkers and other agents.
CBN revealed this in a circular signed by Mohammed Solaja, the acting director of currency operations, on December 13, 2024.
CBN to punish bank branches selling banknotes
The circular referred to an earlier notice issued on November 13, 2024. It showed the apex bank’s shock at the continued sale of naira notes, which it said undermines effective cash distribution to customers and the public.
According to CBN, the practice compromises Nigeria’s integrity in its currency management system.
CBN to raid spots for naira hawkers
The bank disclosed that it will continue to intensify periodic checks to the banking halls and ATMs to review customer cash payouts and mystery shopping at all known cash hawking spots nationwide.
The circular further said any financial institution found guilty would be severely punished, including an N150 million fine on the offending branch for the infraction.
It said other violations would face the full weight of the relevant Banks and Other Financial Institutions Act 2020.
CBN has also directed commercial banks and financial institutions to boost controls, processes, and procedures within their cash management centres, branches, and teller operations.
It is noted that these measures are essential to Nigeria’s economy’s effective and efficient currency flow.
Cash scarcity worsens, and banks reduce withdrawal limits
The development comes as Nigerians have reported that cash scarcity has worsened across the states, with Point-of-Sale (PoS) operators increasing their charges by 100%.
Banks have further reduced cash withdrawal limits on ATMs and across-the-counter transactions.
Legit revealed that the banks reduced over-the-counter withdrawals from N10,000 per customer to N5,000 and N2,000 as of Thursday, December 12, 2024.
CBN speaks on circulation of old naira notes
Legit earlier reported that CBN has debunked reports that old N200, N500 and N1,000 notes will no longer be valid after December 31, 2024.
Bank disclosed in a circular on Thursday, December 12, 2024, that the Supreme Court ruling on November 29, 2023, on the continued use of old naira notes remains indefinitely.
The apex court also ruled that the previous banknotes would remain legal tender indefinitely.
