The Central Bank of Nigeria (CBN) has imposed sanctions totaling N1.35 billion on nine Deposit Money Banks (DMBs) for failing to ensure the availability of Naira notes through Automated Teller Machines (ATMs) during the 2024 festive season, a period of heightened demand for cash.
In a statement issued on Tuesday, the Acting Director of Corporate Communications at the CBN, Hakama Ali, disclosed that each of the affected banks was fined N150 million for breaching the apex bank’s cash distribution guidelines. The sanctions followed routine inspections of bank branches during the yuletide season.
The affected banks 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.
“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability,” Ali stated, emphasizing the apex bank’s commitment to protecting the interests of the Nigerian populace and ensuring financial stability.
The CBN further disclosed that the fines would be deducted directly from the accounts of the sanctioned banks held with the central bank. This action forms part of a broader strategy to address persistent cash shortages and ensure strict adherence to cash circulation policies.
In its statement, the apex bank reaffirmed its commitment to continued monitoring and enforcement, targeting issues such as cash hoarding and rationing, particularly by Point-of-Sale (POS) operators. It highlighted concerns about operational violations, including excessive cash withdrawals that exceed the daily POS transaction limit of N1.2 million.
The enforcement action comes in the wake of repeated warnings from the CBN to financial institutions regarding compliance with cash distribution guidelines. At the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, CBN Governor Olayemi Cardoso had stressed the importance of customer trust and operational efficiency within the banking sector.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso stated during the event.
The CBN reiterated its resolve to maintain a robust cash buffer to meet the needs of Nigerians, particularly during critical periods. It warned all financial institutions to adhere strictly to its guidelines, cautioning that future breaches would attract swifter and more stringent penalties.
This decisive action by the CBN underscores its dedication to ensuring that banks operate transparently and prioritize the needs of their customers.
