Hard times await hawkers of mint-fresh naira hawkers as well as their collaborating bank branches as the Central Bank of Nigeria has announced that it will, henceforth, impose N150 million fine on those caught violating the national currency.
The measure came hot on the heels of public outcry against the mushrooming of naira hawkers at parties, popularly called Owambe in the South West, and at some strategic points in some states where hawkers display their illicit enterprise even on busy highways.
The apex bank, while announcing the new measure, said it will impose a fine of N150 million per branch on Deposit Money Banks found culpable in facilitating the illegal flow of mint naira notes to currency hawkers and unscrupulous agents while customers are served stinking, dirty notes.
The Central Bank announced the tough measure via a circular dated Friday, December 13, 2024, signed by the Acting Director of the Currency Operations Department, Mr. Mohammed Olayemi.
In the circular, the CBN expressed deep concern about the increasing prevalence of mint naira notes being traded by hawkers, a practice that the apex bank said was impeding efficient and effective cash distribution to customers and the general public.
Referring to its earlier circular dated November 13, 2024, the CBN underscored the apex bank’s resolve to stop the illicit trading in new naira notes.
The directive stipulates that any branch of a financial institution found culpable will face a penalty of N150 million for the first violation, warning that subsequent infractions will attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
To ensure strict compliance with the directive, the apex bank declared that it would increase periodic spot checks in banking halls and ATMs while deploying mystery shoppers to uncover illicit cash hawking spots across the country.
Here are excerpts from the circular: “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.
“CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country.
“In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes shall be penalised at first instance N150,000,000.00 (One hundred and fifty million Naira) only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020.”
The Central Bank urged Deposit Money Banks (DMBs) to strengthen controls, processes, and procedures around their Cash Management Centres, branches, and teller operations to prevent their systems from being exploited for illegal transactions.
