The Central Bank of Nigeria (CBN) may fine banks that hoard the new naira notes up to N5 million, and it can impose a N50,000 penalty on members of the public who sell the new notes. This enforcement is based on the Central Bank of Nigeria Act of 2007 and the Banks and Other Financial Institutions Act of 2020.
Under the Banks and Other Financial Institutions Act, 2020, the CBN governor can propose to alter, rescind, or impose fresh or additional conditions on a licensed bank or financial institution after notifying the affected banks. Any bank that fails to comply with these conditions is liable for a fine of at least N5 million, plus an additional N100,000 for each day of non‑compliance. Section 5(4‑5) of the Act states: “Where the governor proposes to vary, revoke or impose fresh or additional conditions on a licence, the Governor shall, before exercising such power, give notice of his intention to the bank concerned and give the bank an opportunity to make representation to him thereon. Any bank which fails to comply with any fresh or additional condition imposed in relation to its licence is liable to (a) a penalty of not less than N5,000,000, and (b) an additional penalty of N100,000 for each day during which the fresh or additional condition is not complied with.”
The Act also holds bank directors, managers, or officers personally accountable. Section 5(6) provides that any such person who fails to take reasonable steps to ensure compliance commits an offence and is liable, on conviction, to imprisonment for not less than three years, a fine of at least N2 million, or both.
The CBN Act of 2007 makes it an offence to hawk, sell, or otherwise trade in naira notes. Violators face imprisonment for a term of not less than six months, a fine of at least N50,000, or both. Section 21(4) reads: “It shall also be an offence punishable under Sub‑section (1) of this section for any person to hawk, sell or otherwise trade in the naira notes, coins or any other note issued by the Bank.”
The CBN has previously warned that anyone caught selling or abusing the new naira notes will be prosecuted. In a statement, the bank’s Director of Corporate Communications, Osita Nwanisobi, expressed concern over the illicit sale of the new notes and said the CBN would work with security agencies to address the issue. Nigerians who reject or deface the new notes may also face a N50,000 fine or six months’ imprisonment.
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