CBN orders banks to load ATMs, warns against naira hawking

The Central Bank of Nigeria (CBN) has directed commercial banks across the country to load their Automated Teller Machines (ATMs), to end the scarcity of naira notes being faced by Nigerians.

The CBN also vowed to heavily penalise Deposit Money Banks (DMBs) found supporting the hawking of naira notes in the country.

The apex bank said this in a memo to DMBs on Friday, November 15, 2024.

In the memo issued by the CBN Acting Director of Currency Operations Department, Solaja Olayemi, the apex bank said it would engage in a “mystery shopping” exercise and periodic “spot checks” on cash distribution and disbursement activities of DMBs to ascertain the source of such naira notes.

Olayemi stated that the initiatives were introduced to monitor and prevent practices that facilitate the flow of mint banknotes to hawkers of naira cash, thereby discouraging abuse of the currency.

He said the initiatives would also ensure that banks support efficient and responsible cash disbursement to the public.

Naira trades N1,652/$ at official market

The CBN official noted: “For the avoidance of doubt, it should be noted that DMBs, to whom cash seized from hawkers of cash is traced, will be penalised 10 per cent of the total value of cash withdrawn on the day the seized cash was withdrawn from the CBN.

“Every subsequent offence will be charged an incremental penalty of five per cent.

“DMBs 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.”

Olayemi urged banks to implement internal controls for responsible disbursement and accountability in respect of mint naira notes payouts at their outlets, as the yuletide season approached, with an anticipated increase in cash demand.

He added: “To enhance public access to cash, we encourage banks to prioritise cash distribution through Automated Teller Machines (ATMs).

“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.”

The Star