The Central Bank of Nigeria (CBN) has implemented a ₦150 million fine on deposit money banks and financial institutions found selling newly minted banknotes to currency hawkers. This action was taken to address the issue of illicit flow of mint banknotes to unauthorized agents, hindering efficient cash distribution to the public. The cash shortage problem in Nigeria arose from the CBN’s currency redesign policy intended to tackle counterfeit currency and reduce cash circulation outside of banks. Despite the policy being discontinued, the cash scarcity persisted, leading to increased demand for cash through alternative means like POS agents and currency hawkers. To enforce compliance, the CBN has issued strict penalties for banks involved in facilitating the unauthorized circulation of mint banknotes. While these fines aim to deter the problem, the underlying systemic issues that incentivize businesses to sell banknotes through informal channels remain a challenge.
CBN imposes ₦150 million fine on banks found selling mint banknotes to currency hawkers
