In its bid to take the campaign against the continued abuse of the Naira beyond rhetorics, and in anticipation of increased demand for cash the Central Bank of Nigeria (CBN), at the weekend urged Deposit Money Banks to implement internal controls for responsible disbursement and accountability regarding mint banknotes payouts at their outlets.

In the circular to all deposit money banks referenced COD/DIR/INT/CIR/001/021, dated November 13, 2024, the CBN announced plans to monitor and check practices that facilitate the flow of mint banknotes to hawkers, especially as the yuletide season beckons.

In the process, according to the circular signed by Solaja, Mohammed J. Opeyemi, Acting Director, Currency Operations Department, the apex bank hopes to discourage abuse of Naira, and thereby ensure that deposit money banks support efficient and responsible cash disbursement to the public.

The CBN said it plans to partner relevant law enforcement agencies while intensifying spot checks and engaging in mystery shopping activities to monitor and enforce responsible distribution and prevent Naira abuse.

It warned that “DMBs to whom cash seized from “hawkers” of cash is traced, will be penalised 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN).”

Every subsequent offence, the circular continued, “will be charged incremental penalty of 5%.”

Meanwhile, the circular further warned that “DMB 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.”

To enhance public access to cash, the circular encouraged banks to prioritize cash distribution through their Automated Teller Machines (ATMs).