CBN to Penalise Banks for Empty ATMs, Sale of Mint Naira Notes to Hawkers

The Central Bank of Nigeria (CBN) has announced strict measures against Deposit Money Banks (DMBs) found with empty Automated Teller Machines (ATMs) or engaging in the sale of newly minted naira notes to currency hawkers.

In a memo addressed to DMBs, Solaja Olayemi, the acting director of the currency operations department, disclosed that the CBN will implement “mystery shopping” and periodic “spot checks” to track the flow of mint naira notes. The move aims to curb practices enabling naira hawking and to uphold the integrity of the currency.

Penalties for Offending Banks

The CBN clarified that any bank traced to seized mint cash in the possession of hawkers would face a penalty of 10% of the total cash value withdrawn from the CBN on the day the seized cash was taken. Repeat offenders will incur an additional 5% penalty for each subsequent violation. Banks engaging in cash hoarding, diversion, or other activities impeding efficient cash distribution will also face sanctions.

“For the avoidance of doubt, it should be noted that DMBs, to whom cash seized from hawkers of cash is traced, will be penalised,” said Olayemi.

Measures for Responsible Cash Distribution

The CBN urged banks to strengthen internal controls to ensure accountable disbursement of mint banknotes and prioritize ATM cash availability, especially as the festive season approaches and cash demand surges.

“During 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,” Olayemi stated.