In a decisive move to uphold cash flow stability, the Central Bank of Nigeria (CBN) has imposed penalties on nine Deposit Money Banks (DMBs) for failing to provide adequate Naira notes through automated teller machines (ATMs) during the Yuletide season.
Each of the affected banks has been fined ₦150 million for breaching the CBN’s cash distribution guidelines. This enforcement action came after spot checks conducted on their branches revealed non-compliance.
The CBN’s stringent action underscores its repeated warnings to financial institutions about the need to ensure seamless cash availability, especially during periods of high demand. The banks penalized include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.
In an official communication, the CBN confirmed that the fines would be debited directly from the respective banks' accounts with the apex bank. Acting Director of Corporate Communications, Hakama Sidi Ali, emphasized the importance of maintaining cash flow to foster public trust and economic stability.
“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she stated.
The apex bank’s investigations and monitoring efforts remain ongoing, with a focus on identifying instances of cash hoarding and rationing at bank branches and among Point-of-Sale (POS) operators. To combat illegal cash sales and operational violations, including exceeding POS operators’ daily cumulative withdrawal limit of ₦1.2 million, the CBN is collaborating with security agencies.
Governor Olayemi Cardoso reiterated the bank’s commitment to ensuring efficient cash distribution during his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024. He warned financial institutions to strictly adhere to the CBN’s cash distribution policies or face severe penalties.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso stated, emphasizing the CBN’s resolve to maintain a robust cash buffer to meet Nigerians’ needs.
The CBN has called on all financial institutions to strictly comply with its guidelines, warning that further violations would prompt swift and decisive actions to protect economic stability and public confidence.
