CBN Imposes N150 Million Fine On Banks For Aiding Currency Mismanagement.
The Central Bank of Nigeria (CBN) has imposed a fine of N150 million on Deposit Money Banks (DMBs) found to be facilitating the illicit flow of mint naira banknotes to currency hawkers and unscrupulous economic agents.
The penalty was announced in a circular issued on 13 December 2024 by Solaja Mohammed J. Olayemi, the Acting Director of Currency Operations. The circular, with reference number COD/DIR/INT/CIR/001/025, followed an earlier notice issued on 13 November 2024, highlighting the apex bank’s dismay at the continued commodification of the naira.
According to the CBN, this practice undermines efficient cash distribution to bank customers, compromises the integrity of the naira, and negatively impacts Nigeria’s economy.
The circular stated, “CBN will continue to intensify the periodic spot checks to the banking halls and ATMs to review cash payouts to banks’ customers, as well as mystery shopping at all identified cash hawking spots across the country.”
The CBN also warned that any bank branch found culpable would face a N150 million fine for the first violation. Subsequent infractions would attract stricter penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020.
An official of the CBN, who spoke anonymously, explained that the measures aim to deter unwholesome practices in Nigeria’s currency management system. “This measure is not merely punitive but also serves as a deterrent to discourage the activities that continue to undermine the naira’s value and integrity. We remain committed to ensuring that the naira is treated with the dignity it deserves,” the official said.
The CBN has directed all banks and financial institutions to strengthen controls and processes within their cash management systems. These measures are essential to improving the flow of currency within the economy and ensuring equitable access to cash for all Nigerians.
A banker, speaking on condition of anonymity, welcomed the move but noted that more support is needed for banks to enhance cash flow monitoring. “The CBN’s directive is commendable, but the system requires improvements to effectively trace cash flows. Both banks and regulators have a shared responsibility to address this issue,” the banker said.
This latest action is part of the CBN’s broader efforts to sanitise Nigeria’s financial system, maintain the integrity of the naira, and promote equitable cash distribution across the country.
