Currency hawkers in the streets of Lagos openly trade crisp Naira notes, but the Central Bank of Nigeria (CBN) is cracking down on this illegal practice.
In a decisive move, the apex bank has fined complicit Deposit Money Banks (DMBs) ₦150 million, aiming to restore the integrity of Nigeria’s currency and ensure fair cash distribution.
The CBN announced this fine in a circular dated December 13, 2024, signed by acting director of currency operations Solaja Mohammed J. Olayemi.
The circular referenced an earlier warning issued on November 13, 2024, but it criticised banks for continuing to facilitate the commodification of the Naira, a practice the CBN said erodes trust in the banking system and damages the economy.
To enforce compliance, the CBN has intensified inspections at banking halls, ATMs, and currency hawking hotspots.
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It has warned banks that each offending branch will incur a fine of ₦150 million for a first offence, with stricter penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020 for repeat violations.
The CBN has emphasised that these measures serve both as punishment and deterrence.
“The Naira is a symbol of our nation and must be treated with respect,” a CBN official stated.
Additionally, the CBN has instructed banks to strengthen internal controls in their cash management operations to prevent further illicit activities.
While bankers have acknowledged the directive, some have called for better tools to monitor cash flows effectively.
Through these actions, the CBN reaffirms its commitment to sanitising the financial system, safeguarding the Naira, and promoting economic stability.
