• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Sunday, July 6, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

CBN To Sanction Banks Linked To Cash Hawkers

by Mark Itsibor
8 months ago
in Business
Share on WhatsAppShare on FacebookShare on XTelegram

The Central Bank of Nigeria (CBN) has announced stringent penalties against Deposit Money Banks (DMBs) found diverting cash to hawkers, as part of its ongoing efforts to ensure responsible currency distribution.

Advertisement

In a circular dated November 13, 2024, the apex bank stated that any bank linked to cash seized from hawkers would face a 10 per cent fine on the total value of the withdrawn funds.

Subsequent violations will attract an incremental penalty of per cent.

The circular, signed by CBN acting director, Currency Operations Department, Muhammad Olayemi, emphasised that the measures aimed to curb the abuse of naira notes and promote an efficient cash distribution system.

It reiterated the CBN’s commitment to enforcing its Clean Note Policy, which seeks to maintain the integrity of the naira by ensuring proper handling and circulation of banknotes.

RELATED

NIBSS Excludes Non-deposit Banks From Money Transfer Channels

NIBSS, AfricaNenda Advocate Homegrown Solutions For Financial Inclusion

5 minutes ago
Firm Unveils $5bn Trust Fund For Cooperative Financing

Firm Unveils $5bn Trust Fund For Cooperative Financing

6 minutes ago

The CBN also warned DMBs against cash hoarding and diversion, noting that such practices undermine access to cash, particularly during high-demand periods like the yuletide season.

Banks engaging in these activities will face sanctions, with the CBN working closely with law enforcement agencies to intensify spot checks and mystery shopping activities.

The circular read: “For the avoidance of doubt, it should be noted that: a) 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 Central Bank of Nigeria. Every subsequent offense will incur an incremental penalty of 5 per cent.

“b) 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.”

The circular highlighted the need for banks to prioritise the disbursement of cash through Automated Teller Machines (ATMs) to enhance public access and minimise reliance on unauthorised channels.

The apex bank’s directive followed rising concerns over the circulation of new naira notes in informal markets, often traced back to hawkers who sell cash at a premium. By penalising banks involved in such practices, the CBN aimed to deter the misuse of Nigeria’s currency and ensure that cash reaches legitimate end-users.

The enforcement of the penalties forms part of the CBN’s broader strategy to maintain public confidence in the financial system. The Clean Note Policy is central to this approach, as it seeks to reduce the circulation of soiled and unfit banknotes while discouraging unethical practices within the banking sector.

Also, with the festive season approaching, the demand for cash is expected to surge, prompting the CBN to double down on its regulatory efforts.

The circular advised banks to strengthen their internal processes and ensure strict compliance with the guidelines for cash disbursement.

To enforce accountability, the CBN will intensify its monitoring activities, working alongside law enforcement agencies to identify and penalise offenders. These efforts, the apex bank noted, are essential to addressing systemic inefficiencies and ensuring the effective distribution of cash across the country.

The circular noted: “As we approach the yuletide season, with an anticipated increase in cash demand, DMBs are advised to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets. To enhance public access to cash, we encourage banks to prioritize cash distribution through ATMs.

“During this season, the Bank, 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.”


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel

BREAKING NEWS: Nigerians can now earn US Dollars from the comfort of their homes with Ultra-Premium domains, acquire them for as low as $1700 and profit as much as $25,000. Click here to learn how you can earn US Dollars consistently.


Tags: Central Bank of Nigeria (CBN)
SendShareTweetShare
Previous Post

Ondo Guber: 24 Hours To Poll, INEC Restores Festus As LP Candidate, Drops Ebiseni

Next Post

LEAP Africa Celebrates Social Innovators

Mark Itsibor

Mark Itsibor

Mark Itsibor is a journalist and communication specialist with 10 years of experience, He is currently Chief Correspondent at LEADERSHIP Media Group and writes on Finance, Economy, Politics, Crime, and Judiciary. He has a B.Sc in Political Science, Post Graduate Diploma in Journalism (Print), and B.A in Development Communication. His Twitter handle is @Itsibor_M

You May Like

NIBSS Excludes Non-deposit Banks From Money Transfer Channels
Business

NIBSS, AfricaNenda Advocate Homegrown Solutions For Financial Inclusion

2025/07/06
Firm Unveils $5bn Trust Fund For Cooperative Financing
Business

Firm Unveils $5bn Trust Fund For Cooperative Financing

2025/07/06
TCN Receives 7 New Power Transformers In Lagos, To Boost Power Supply
Business

FG Sets 12-month Target To Boost Electricity Supply To Northern States

2025/07/06
Sujimoto Pays ₦273m Salary Arrears, Eyes Construction Of Tallest Tower In Banana Island
Business

Sujimoto Pays ₦273m Salary Arrears, Eyes Construction Of Tallest Tower In Banana Island

2025/07/05
Nigeria’s Internet Subscribers Reach 148m, Highest In 14 Months
Business

Despite 50% Tariff Hike, Internet Usage Hits 1m TB In May

2025/07/05
Equities To Sustain Positive Sentiment Amidst Audited Earnings Expectations
Business

Interim Dividend: Stocks Gain N377bn In 1 Week

2025/07/05
Leadership Conference advertisement

LATEST

Senator Swag Reloaded: Native Wears That Speak Class

NIBSS, AfricaNenda Advocate Homegrown Solutions For Financial Inclusion

Firm Unveils $5bn Trust Fund For Cooperative Financing

FG Sets 12-month Target To Boost Electricity Supply To Northern States

Akwa Ibom Raises Corps Members’ Allowances By 300%

FORPS Donates Boreholes To Two FCT Communities

Abia Community Members Complain Over Land Dispute

NCDC Confirms 10 New Lassa Fever Cases In 2 States

The Bold Victory Of The Justified Believer In Christ

Deliver Your Star (Joseph Had A Dream)

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.