The Central Bank of Nigeria (CBN) has issued a stern warning to Deposit Money Banks (DMBs), vowing to impose sanctions on those that refuse to accept old and small denominations of the United States Dollar.
In a circular released on Tuesday, the apex bank expressed dismay over the continued rejection of these notes, describing the practice as "unacceptable".
According to the circular, signed by the Acting Director of Currency Operations, the CBN's market intelligence revealed that some banks have been turning away customers with old and small US Dollar notes, contrary to regulatory guidelines.
The CBN has urged banks to desist from this practice, threatening to take appropriate action against erring institutions.
Details of the sanctions are yet to be disclosed.