The Central Bank of Nigeria (CBN) has issued a stern warning to Deposit Money Banks (DMBs) found aiding the hawking of Naira notes. Solaja Olayemi, the acting Director of the Currency Operations Department at CBN, disclosed this in a memo sent to the banks on Friday in Abuja.
The CBN emphasized that strict penalties will be enforced against any banks involved in such illegal practices, aiming to curb the abuse of Nigeria's currency and ensure compliance with financial regulations.
This move is part of CBN's ongoing efforts to maintain the integrity of the Naira and regulate its distribution.
Mr Olayemi said that the CBN would engage in “mystery shopping” exercise and periodic “spot checks” on cash distribution and disbursement activities of DMBs to ascertain the source of such Naira notes.
He said that the initiatives were introduced to monitor and prevent practices that facilitate the flow of mint banknotes to hawkers of Naira cash, thereby discouraging abuse of the Naira.
He said that the initiatives would also ensure that DMBs support efficient and responsible cash disbursement to the public.
“For the avoidance of doubt, it should be noted that DMBs, to whom cash seized from hawkers of cash is traced, will be penalized 10 per cent of the total value of cash withdrawn on the day the seized cash was withdrawn from the CBN.