*The Central Bank of Nigeria introduces new measures to monitor and prevent practices that facilitate the flow of mint banknotes to hawkers of Naira cash, thereby discouraging abuse of the Naira in line with the Bank’s violations of the Clean Note Policy

Isola Moses | 绿帽献妻

The Central Bank of Nigeria (CBN) has warned it will heavily penalise the country’s Deposit Money Banks (DMBs) found supporting the hawking of Naira notes at parks, corporate and social events.

Mr. Solaja Olayemi, Acting Director of Currency Operations Department at CBN, stated this in a memo to DMBs Friday, November 15, in Abuja, FCT.

In curbing the abusive practice in the economy, Solaja disclosed the CBN would engage in 鈥渕ystery shopping鈥� exercise and periodic 鈥渟pot checks鈥� on cash distribution and disbursement activities of DMBs, to ascertain the source of such Naira notes.

Bundles of New Banknotes

The Acting Director of Currency Operations also affirmed the banking sector regulator has introduced the fresh initiatives to monitor and prevent practices that facilitate the flow of mint banknotes to hawkers of Naira cash.

The Bank noted the objective of the measures is to discourage abuse of the Nigerian currency.

The initiatives will also ensure that DMBs support efficient and responsible cash disbursement to consumers of financial products and services.

The Bankers’ Bank further stated: “For the avoidance of doubt, it should be noted that DMBs, to whom cash seized from hawkers is traced, will be penalised 10 percent of the total value of cash withdrawn on the day the seized cash was withdrawn from the CBN.

鈥淓very subsequent offence will be charged an incremental penalty of five percent.”

The top official of the Bank said: “DMBs found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution, including violations of the Clean Note Policy, will incur appropriate sanctions.”

He urged DMBs to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets, as the yuletide season approached, with an anticipated increase in cash demand.

Solaja also stated: “To enhance public access to cash, we encourage banks to prioritise cash distribution through Automated Teller Machines (ATMs).

鈥淒uring this season, the CBN, in collaboration with relevant law enforcement agencies, will intensify spot checks and mystery shopping activities to monitor and enforce responsible cash distribution and prevent Naira abuse.”

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