The Central Bank of Nigeria (CBN) has announced stringent measures to curb abuses in the handling and distribution of cash, warning Deposit Money Banks (DMBs) against keeping Automated Teller Machines (ATMs) empty and selling mint naira notes to hawkers.

In a memo released on Friday, Solaja Olayemi, the acting director of the CBN’s currency operations department, disclosed that the bank will conduct “mystery shopping” and periodic spot checks to monitor the cash disbursement activities of banks. The initiatives aim to prevent practices that facilitate the circulation of fresh naira notes to unauthorized hawkers, discouraging naira abuse and promoting responsible cash distribution.

Mr. Olayemi emphasized the penalties for violations, stating, “Banks to whom cash seized from hawkers is traced will be penalized 10% of the total value of cash withdrawn on the day the seized cash was released by the CBN. Subsequent offences will attract an incremental penalty of 5%.”

Additionally, banks found guilty of hoarding, diverting cash, or violating the CBN’s Clean Note Policy will face stiff sanctions. To ensure compliance, the CBN has directed DMBs to implement internal controls to track and manage mint banknote payouts responsibly, particularly as the festive season approaches.

The CBN urged banks to prioritize loading cash into ATMs, noting that the yuletide season traditionally brings heightened demand for cash. “To enhance public access to cash, we encourage banks to prioritize cash distribution through ATMs,” Mr. Olayemi said.

To enforce these measures, the CBN will intensify its monitoring efforts in collaboration with law enforcement agencies. “Spot checks and mystery shopping activities will be ramped up to ensure responsible cash distribution and to deter naira abuse,” he added.

The announcement reflects the CBN’s continued commitment to safeguarding the integrity of the naira and ensuring equitable access to cash for Nigerians.