The Central Bank of Nigeria (CBN) has announced plans to impose severe sanctions on Deposit Money Banks (DMBs) found guilty of hoarding or diverting cash, including channeling funds to currency hawkers.
According to the apex bank, any institution linked to cash seized from hawkers will face a fine of 10 percent of the total value of the withdrawn funds. For repeat offenses, an additional penalty of 5 percent will be imposed.
The directive was communicated in a circular dated November 13, 2024, and signed by the CBN’s acting Director of Currency Operations, Mr. Muhammad Olayemi.
This measure comes in response to public complaints about limited cash availability, particularly at Automated Teller Machines (ATMs). The CBN stated that it is conducting mystery shopping exercises and spot checks to curb naira abuse and ensure responsible cash distribution, especially as the festive season approaches.
The bank emphasized that these actions aim to prevent newly minted notes from being diverted to hawkers and to promote efficient cash disbursement to the public.
The circular also reiterated that any bank implicated in such practices would face immediate sanctions. “Any bank traced to seized cash from unauthorized hawkers will be fined 10 percent of the total value of cash withdrawn from the CBN on the day the offense was committed,” the directive noted.
The apex bank further warned that repeat violations would attract additional fines or other regulatory actions.
The CBN also highlighted that hoarding, diversion, and other practices disrupting cash flow violate its Clean Note Policy. It directed banks to prioritize cash disbursement through ATMs to ensure accessibility.
In a statement signed by Mr. Solaja Olayemi, acting Director of the Currency Operations Department, the bank reaffirmed its commitment to penalizing any institution disbursing naira notes to unauthorized hawkers.
