The Central Bank of Nigeria (CBN) has issued a stern warning to deposit money banks (DMBs) in the country, threatening penalties for the rejection of mutilated and dirty naira banknotes.

This announcement comes as the CBN continues to receive numerous complaints regarding the refusal of these notes by some financial institutions.

In a statement released on Thursday and signed by Solaja Olayemi, the acting director of the currency operations department at CBN, the apex bank emphasized the enforceability of its circular dated July 2, 2019, which outlines penalties for the rejection of naira banknotes.

“The Central Bank of Nigeria (CBN) has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks (DMBs),” the statement read. “Consequently, it has become imperative to remind DMBs that the CBN circular… is still enforceable and binding on erring DMBs.”

The CBN reiterated its stance that it would not hesitate to impose strict sanctions on banks found guilty of rejecting naira deposits from the public under any pretext.

This move underscores the CBN’s commitment to maintaining the integrity and usability of Nigeria’s currency across the financial system.

In a related development on July 2, the CBN also cautioned banks and authorized foreign exchange dealers against the selective rejection of old series and lower denominations of US dollars.

The apex bank stressed the importance of adhering to this directive following observations during a consumer market survey.