The Central Bank of Nigeria (CBN) has taken a strong stance against the illicit trade of naira notes, warning banks that facilitate or enable currency hawkers to face severe penalties. In a circular issued on Friday, the CBN announced that any bank found guilty of releasing naira notes to currency hawkers would be fined N150 million per branch.
(Image: Punch Newspaper)
The CBN's decision comes amidst growing concerns over the prevalence of mint naira notes being traded by hawkers along highways and at social gatherings nationwide. This practice not only undermines the efficiency of cash distribution but also perpetuates the commodification of Naira banknotes.
The circular, signed by the CBN's Acting Director of Currency Operations, Mohammed Olayemi, emphasized the apex bank's commitment to curbing this illicit activity. The CBN has vowed to increase periodic spot checks in banking halls and Automated Teller Machine (ATM) outlets, as well as deploy mystery shoppers to uncover cash hawking spots across the country.
The imposition of this harsh penalty is expected to serve as a deterrent to banks and financial institutions that engage in or facilitate illicit cash transactions. The CBN's efforts aim to promote efficient and effective cash distribution, ensuring that bank customers and the general public have access to cash without resorting to currency hawkers.
The CBN's decisive action against banks aiding currency hawkers demonstrates its commitment to maintaining the integrity of the nation's currency and promoting a stable financial system. As the apex bank continues to intensify its efforts to curb illicit cash transactions, banks and financial institutions are urged to comply with regulatory guidelines to avoid facing severe penalties.
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