Central Bank of Nigeria (CBN) has announced stringent penalties against Deposit Money Banks (DMBs) found diverting cash to hawkers, as part of its ongoing efforts to ensure responsible currency distribution.

In a circular dated November 13, 2024, the apex bank stated that any bank linked to cash seized from hawkers would face a 10 per cent fine on the total value of the withdrawn funds.

Subsequent violations will attract an incremental penalty of per cent.

The circular, signed by Muhammad Olayemi, acting director, Currency Operations Department, CBN, emphasised that the measures aimed to curb the abuse of naira notes and promote an efficient cash distribution system.

It reiterated the CBN’s commitment to enforcing its Clean Note Policy, which seeks to maintain the integrity of the naira by ensuring proper handling and circulation of banknotes.

The CBN also warned DMBs against cash hoarding and diversion, noting that such practices undermine access to cash, particularly during high-demand periods like the yuletide season.

Banks engaging in these activities will face sanctions, with the CBN working closely with law enforcement agencies to intensify spot checks and mystery shopping activities.

The circular read: “For the avoidance of doubt, it should be noted that: a) DMBs, to whom cash seized from “hawkers” of cash is traced, will be penalized 10 per cent of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria. Every subsequent offense will incur an incremental penalty of 5 per cent.

“b) 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.”

The circular highlighted the need for banks to prioritise the disbursement of cash through Automated Teller Machines (ATMs) to enhance public access and minimise reliance on unauthorised channels.

The apex bank’s directive followed rising concerns over the circulation of new naira notes in informal markets, often traced back to hawkers who sell cash at a premium. By penalising banks involved in such practices, the CBN aimed to deter the misuse of Nigeria’s currency and ensure that cash reaches legitimate end-users.

The enforcement of the penalties forms part of the CBN’s broader strategy to maintain public confidence in the financial system. The Clean Note Policy is central to this approach, as it seeks to reduce the circulation of soiled and unfit banknotes while discouraging unethical practices within the banking sector.

Also, with the festive season approaching, the demand for cash is expected to surge, prompting the CBN to double down on its regulatory efforts.

The circular advised banks to strengthen their internal processes and ensure strict compliance with the guidelines for cash disbursement.

To enforce accountability, the CBN will intensify its monitoring activities, working alongside law enforcement agencies to identify and penalise offenders. These efforts, the apex bank noted, are essential to addressing systemic inefficiencies and ensuring the effective distribution of cash across the country.

The circular noted: “As we approach the yuletide season, with an anticipated increase in cash demand, DMBs are advised to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets. To enhance public access to cash, we encourage banks to prioritize cash distribution through ATMs.

“During this season, the Bank, 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.

United Bank for Africa (UBA) Plc, Africa’s Global Bank will raise N239.4 billion through a Rights Issue of 6,839,884,274 ordinary shares of 50 kobo each at N35.00 per share.

The Rights Issue, which opened on Friday, November 15, 2024, gives existing shareholders the opportunity to purchase additional shares in proportion to their current holdings and is being offered based on one new ordinary share for every five existing ordinary shares held by shareholders, as of November 05, 2024.

In his letter to the shareholders informing them, Tony Elumelu,  group chairman of United Bank for Africa, noted that following the resolution of the Group’s shareholders at the Annual General Meeting held in May 2024, authorising the establishment of the N400 billion Equity Shelf Programme, UBA will embark on a Rights Issue, as the first step in its broader capital raising programme.

“UBA’s Rights Issue aims to raise N239.4 billion, through the issuance of new Ordinary Shares to our shareholders. The primary objective of this Rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry,” Elumelu said.

Explaining the use of proceeds, the Group Chairman noted that, beyond regulatory compliance, the funds will expand the Group’s lending capacity, investment in digital infrastructure, support sustainable business practices and expanding the Group’s African operations.

Elumelu also highlighted how UBA is driving economic growth across Africa. “Our historic partnership with the Africa Continental Free Trade Area (AfCFTA) Secretariat, where UBA pledged up to US$6 billion in financing over the next three years to support eligible SMEs across Africa underscores our commitment to fostering economic development”.

The issuance is in compliance with the revised minimum capital requirements for Nigerian commercial banks announced by the apex banking regulator in Nigeria – the Central Bank of Nigeria (CBN) earlier this year.

UBA has consistently demonstrated growth and resilience, evidenced by the Group’s strong financial performance and recent recognition within the industry. UBA’s progressive dividend policy, which has seen an increase by 14.8% annualised dividend yield has demonstrated the Group’s ability to reward shareholders consistently.

In 2023/2024, UBA won “Bank of the Year” Awards in eight of its subsidiaries – Cameroon, Chad, Ghana, Cote d’Ivoire, Mozambique, Republic of Congo; Sierra Leone; Tanzania, as well as the Regional Award for Africa and in 2024 has won World Best Frontier Markets Bank and Best SME Bank Africa.

Application for the provisional allotment of the Rights to the new ordinary Shares will be made exclusively through the NGX e-offer portal during the offer period, while existing shareholders may also apply for additional shares above their provisional allotment as described in the Provisional Allotment Letter.

Shareholders who are customers of the Bank are also encouraged to access their Rights through UBA’s internet banking and mobile banking channels.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries. With a unique international presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa and globally, through retail, commercial, corporate and institutional banking, innovative cross-border payments and remittances, trade finance and related banking services.

To commemorate the upcoming International Anti-Fraud Awareness Week, PalmPay, a leading financial institution in Nigeria, is launching a series of community-focused initiatives to educate the public on fraud prevention and digital security.

The highlight of this initiative is a community walk themed “United Against Fraud: Building a Safer Future”, set to take place across Lagos on November 22, 2024. This walk will gather key stakeholders from various sectors, PalmPay staff, and members of the public, reinforcing a collective commitment to a safer digital finance ecosystem in Nigeria.

The walk will commence at designated PalmPay offices, moving towards the vibrantIkeja tech hub, Computer village. Along the route, participants will distribute informative materials and engage with local residents and passersby, sharing tips on fraud prevention and encouraging safe digital practices. The event is open to all who are interested in standing against fraud and learning about ways to protect themselves in today’s digital landscape.

Fraud continues to be a significant challenge within Nigeria’s growing digital financial ecosystem. Recent data has shown a staggering increase in fraud related cases , making it imperative for both businesses and consumers to be proactive in safeguarding themselves.

PalmPay, committed to promoting a secure and trustworthy digital finance landscape, will be spearheading an awareness campaign throughout Anti-Fraud Awareness Week to support financial literacy among its customers. The goal is to encourage its users to adopt safe digital practices, such as setting strong passwords, recognizing phishing attempts, and reporting any suspicious activity promptly.

“At PalmPay, we are deeply committed to safeguarding our users from fraud by providing the tools and knowledge they need to protect themselves,” said Adenekan Oluwatosin, Anti-Fraud Officer at PalmPay. “As digital finance becomes more integral to everyday life, it’s crucial to stay vigilant and informed about potential risks. Our Anti-Fraud Awareness Week reaffirms our commitment to proactive security measures and financial literacy.”

Chika Nwosu, Managing Director of PalmPay, added,  “This initiative aligns with PalmPay’s mission to foster a secure and trustworthy financial landscape for Nigerians. We believe that collaboration with the public and industry stakeholders is vital to tackle fraud effectively.”

PalmPay encourages the public to participate in this awareness walk to stand against fraud, learn essential self-protection strategies, and contribute to building a safer, more secure digital financial landscape for all Nigerians.