The Central Bank of Nigeria has imposed a hefty ₦150 million fine on deposit money banks and financial institutions found selling newly minted naira notes to currency hawkers.
This development comes amid a prolonged cash shortage that has frustrated citizens and disrupted cash access across the country.
A circular issued by the CBN on Friday revealed the apex bank’s disapproval of the illicit flow of mint banknotes to hawkers.
The CBN described this practice as detrimental to efficient cash distribution for customers and the public.
“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,” the circular stated.
The ongoing cash crisis, which began in late 2022 with the controversial currency redesign policy, has persisted even after the initiative was shelved. Initially aimed at reducing counterfeit currency and cash outside the banking system, the policy inadvertently triggered severe cash shortages.
As the crisis dragged on, many Nigerians turned to alternative cash channels, including POS agents and informal traders.
Currency hawkers—who source mint notes from banks and resell them at a markup during events and functions—have compounded the issue. Reports suggest POS agents in Lagos markets have sold newly minted notes at inflated rates, worsening the scarcity.
In response to the fines, some banks have already adjusted their operations. Sources disclosed that at least two major commercial banks in Lagos stopped disbursing mint banknotes over the counter earlier this week.
“Any deposit money bank or financial institution found culpable of facilitating, aiding, or abetting illicit flows of mint banknotes will face a ₦150 million fine per erring branch,” the CBN warned in the circular.
Repeat offenders could face stiffer penalties under the Banks and Other Financial Institutions Act 2020.
Despite these measures, questions remain about whether fines alone can address the systemic challenges incentivizing cash-heavy businesses to bypass banks and sell their notes to POS agents.
