CBN may fine banks hoarding new notes

According to The Nigerianwatch, the Central Bank of Nigeria may fine banks hoarding new notes N5 million and members of the public selling new notes N50,000.

The Central Bank of Nigeria Act of 2007 and the Banks and Other Financial Institutions Act of 2020 served as the foundation for this.

The Banks and Other Financial Institutions Act of 2020 states that the CBN governor may propose to change, revoke, or impose new or additional conditions on a licensed bank or financial institution after notifying the banks involved.

It stated that any bank that fails to comply with the conditions will be fined at least N5 million, plus an additional N100,000 for each day of noncompliance.

Section 5(4,5) of the Act read in part, "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 that fails to comply with any new or additional condition imposed in relation to its licence is subject to (a) a penalty of not less than N5,000,000, and (b) an additional penalty of N100,000 for each day the fresh or additional condition is not complied with."

The document also states that any bank director, manager, or officer who fails to ensure compliance is also guilty and faces at least three years in prison, N2 million, or both.

According to Section 5(6) of the Act, "any person who, as a director, manager, or officer of a bank, fails to take reasonable steps to ensure compliance with any of the conditions of the bank's licence commits an offence and is liable on conviction to imprisonment for a term of not less than three years or a fine of not less than N2,000,000, or both."

It is an offense under the CBN Act 2007 to hawk, sell, or otherwise trade in naira notes, and anyone found guilty faces imprisonment for at least six months or a fine of at least N50,000. According to the document, violators face both a fine and imprisonment.

"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," Section 21(4) of the Act stated.

The Central Bank of Nigeria had previously threatened to prosecute anyone caught selling or abusing the Naira.

The CBN expressed concerns about the sale of the new notes in a statement issued by the bank's Director of Corporate Communications, Osita Nwanisobi, adding that it would work with security agencies to address the issue.

Nigerians who reject or deface the new naira notes may face a N50,000 fine or six months in prison, according to Nigerianwatch.

Leave A Comment


Subscribe to our newsletter to stay.

Sponsor Ad