The Central Bank of Nigeria (CBN) has imposed a ₦150 million fine on banks found guilty of distributing the redesigned naira notes to currency hawkers. The hawking of the new ₦200, ₦500, and ₦1,000 notes became widespread following their introduction, with reports of these notes being sold on the black market at inflated prices. This prompted the CBN to take stronger measures.
In a statement signed by Sidi Ali Hakama, the acting director of corporate communications, the CBN reiterated that these redesigned notes remain valid legal tender, in accordance with a Supreme Court ruling from November 29, 2023, and cautioned against hoarding.
Further clarification was issued in a circular signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi, on Friday. The CBN expressed concern over the growing presence of mint naira notes being traded by hawkers, which it described as hindering efficient cash distribution to the public.
The circular referred to a previous directive from November 13, 2023, and emphasized the CBN’s commitment to addressing the commodification of the naira. The directive states that any bank branch found guilty will be fined ₦150 million for the first violation, with harsher penalties for subsequent offenses under the Banks and Other Financial Institutions Act (BOFIA) 2020.
To enforce compliance, the CBN announced plans to increase periodic spot checks at banking halls and ATMs, as well as deploy mystery shoppers to identify illegal cash hawking activities nationwide.
The Central Bank of Nigeria (CBN) has however dismissed reports suggesting that the old N200, N500, and N1,000 banknotes will cease to be legal tender on December 31, 2024.
