The Central Bank of Nigeria (CBN) has issued a strong warning to Deposit Money Banks (DMBs) against cash hoarding and diversion, cautioning that offenders will face severe penalties.
In a circular dated November 13, 2024, and signed by the Acting Director of Currency Operations, Muhammad J. Olayemi, the apex bank outlined measures to ensure fair and transparent cash distribution, particularly as the festive season approaches.
The CBN emphasized its ongoing spot checks and mystery shopping exercises to prevent the abuse of naira notes and curb the flow of newly minted banknotes to unauthorized hawkers. Banks linked to such practices will face a penalty of 10% of the withdrawn cash value on the day of the offense, with repeat violations attracting additional fines.
The apex bank also urged DMBs to enhance cash availability through ATMs to meet public demand, noting plans to work with law enforcement for strict enforcement of compliance.
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