It was no surprise when news platforms ran the headline, “CBN FINES 9 Banks for Cash Scarcity in Their ATMs.” What’s shocking is how long it took—years of persistent failures and only after the Yuletide—for these sanctions to arrive. To be honest, nine banks seem far too few. If the CBN scrutinized all the banks, I doubt any would come away unscathed from the charge of flouting policies on cash dispersal.
Just the other day, I found myself in need of cash at a shop. A line of ATMs stood nearby, but instead of trying my luck, I walked straight to a PoS operator. Why? I’ve grown accustomed to ATMs being empty. This problem has become a scourge for Nigerians, especially during critical periods like the festive season when the demand for cash peaks. Despite the CBN’s directives to ensure seamless cash flow, many banks continue to fall short, leaving customers frustrated and stranded.
Now that the government seems to have eased its feverish push for a cashless economy, reverting to a cash-based system, it raises a pressing question: where are the notes? If cities struggle with this unrelenting cash scarcity, I shudder to imagine what Nigerians in rural or semi-urban areas endure.
When ATMs run dry, people are left with few choices—either endure endless queues at bank branches or pay exorbitant fees at PoS terminals. The brunt of this falls on small business owners, artisans, and market traders who depend heavily on cash transactions. Many are left unable to restock supplies or meet their daily needs, compounding economic hardships.
The CBN’s recent ₦1.35 billion fine on nine Deposit Money Banks is a step forward, but is it enough? Considering the costs banks incur in maintaining functional ATMs—power supply, service agents, and so on—such fines might feel inconsequential. Stricter penalties are needed to compel compliance.
It’s well-known that banks prioritize profit, but at what cost to the public? The CBN’s punitive actions are commendable, but regulators must remain proactive. Expecting banks to self-correct at this point is wishful thinking. Many in the banking sector have shown little commitment to serving the public or fulfilling their role in cash distribution.
Excuses of logistical challenges or note shortages no longer suffice. The CBN has provided clear guidelines, cash distribution channels, and withdrawal limits to ensure equity. Banks must prioritize investments in robust ATM networks, closely monitor cash reserves, and collaborate with regulators to meet customer needs effectively.
Beyond fines, the CBN must enforce stricter oversight: surprise audits, real-time ATM monitoring, and transparency in cash allocation. Repeat offenders should face harsher consequences, including operational restrictions.
Empty ATMs erode public trust in the financial system and disproportionately harm the vulnerable. Access to cash is a fundamental right, not a privilege. Banks must prioritize their customers’ needs over profit, and the CBN must remain unwavering in holding them accountable.
If these issues persist, the credibility of Nigeria’s financial system faces irreparable harm. It’s time for banks to act responsibly and for regulators to enforce accountability. Nigerians deserve better.
