The Central Bank of Nigeria (CBN) has announced a stringent measure to curb the illicit trading of new Naira notes.
In a circular issued on December 13, 2024, the CBN stated that any commercial bank found involved in trading new Naira notes to citizens will be fined N150 million.
The CBN expressed concerns about the increasing prevalence of mint Naira notes being traded by hawkers, which impedes efficient and effective cash distribution to customers and the general public.
This illicit activity not only undermines the country’s monetary policy but also perpetuates corruption and financial instability.
To ensure compliance, the apex bank will increase periodic spot checks in banking halls and ATMs, as well as deploy undercover shoppers to expose illicit cash hawking spots across the country. The CBN will also work closely with law enforcement agencies to prosecute individuals and institutions found guilty of this offense.
The CBN’s move aims to prevent the exploitation of the financial system for illegal transactions and ensure that banks operate in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
By imposing a hefty fine of N150 million, the CBN is sending a strong message to commercial banks and other financial institutions to desist from this illicit activity.
