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CBN Urged To Look Beyond Banks In Fight Against Naira Abuse - INDEPENDENT
LAGOS – The Central Bank of Nigeria (CBN) has been told to spread its investigation towards its cash points across the country if it is serious about curbing cash hoarding and diversion.
A source close to a meeting of banks’ executives on Sunday told Daily Independent that the warning issued to banks by the CBN on Friday is not only meant for them.
The CBN on Friday issued a stern warning to Deposit Money Banks over cash hoarding and diversion, stating that such actions will attract stiff penalties.
In a circular dated November 13, 2024, signed by the Acting Director of Currency Operations, Muhammad Olayemi, and released by the CBN on Friday, the apex bank announced intensified measures to ensure efficient and transparent cash disbursement.
The CBN reminded banks of its ongoing mystery shopping exercises and spot checks aimed at discouraging the abuse of naira notes and ensuring responsible distribution of cash, especially as the festive season approaches.
According to the circular, the initiatives are designed to prevent the flow of newly minted banknotes to hawkers and support efficient cash disbursement to the public.
The apex bank stated that any DMB traced to seized cash from unauthorised hawkers would face financial penalties.
Such banks will be fined 10 percent of the total value of cash withdrawn from the CBN on the day the offence was committed.
Repeat offenders will incur an additional five percent penalty for each subsequent breach.
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The CBN also warned against cash hoarding, diversion, and other practices that hinder cash flow, stressing that such actions violate the Clean Note Policy.
It noted that defaulters would face appropriate sanctions, which may include additional fines or other regulatory actions.
While reacting to the circular, our source informed that the CBN should beam its searchlights on its branches and cash points across the country to stem the tide that has refused to abate for many years.
Banks are calling on the CBN to not only look at them in curbing the ugly development but to also monitor their cash points.
“The banks will be glad to see the CBN clean its system from the inside rather than laying the blame on the banks alone”.
Investigation by Daily Independent revealed that hawkers of new naira notes at parties and social functions across the country have steady supply of these notes while they are not available in the banks.
Titus Adekunle, a social activist and consumer rights advocate, said those who supply new notes to hawkers rely on some “big” staff of the banks and CBN.
He said, “Some of the new notes you see at parties are not only from banks because it supplies are not only constant but ever reliable. I have spoken with people who deal in selling new notes at parties and they confessed that their sources are many and not only commercial banks.
“The CBN should see this as a wake-up call and constitute a team comprising of their staff and security agencies to visit parties in major cities and towns across the country like Lagos, Abuja, Ibadan, Abeokuta, Warri, Benin and Kano at weekends”.
