The Central Bank of Nigeria (CBN) has imposed hefty fines totaling N1.35 billion on nine deposit money banks (DMBs) for failing to ensure adequate cash availability through their Automated Teller Machines (ATMs) during the festive season.
The affected banks include major players such as Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa (UBA), and Sterling Bank. Each institution has been fined N150 million after the CBN conducted spot checks, revealing non-compliance with its cash distribution guidelines.
In a statement issued on Tuesday, Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, emphasized that these fines will be directly debited from the banks’ accounts with the central bank.
“The CBN has made it clear that it will not tolerate disruptions to cash flow, especially during peak periods like the yuletide season,” the statement read. “This enforcement action follows multiple warnings to financial institutions to ensure seamless cash availability, particularly during times of high demand.”
The central bank’s stringent response comes after repeated instances of cash shortages at ATMs across the country, which had prompted customer complaints and frustration. Sidi Ali also reiterated that the CBN would not hesitate to impose further sanctions on any bank found violating its cash circulation guidelines.
As part of its ongoing efforts to combat cash hoarding and rationing, the CBN said it will step up monitoring activities at bank branches and point-of-sale terminals. Additionally, the regulator has pledged to work closely with security agencies to tackle illegal cash sales and ensure compliance with the N1.2 million daily withdrawal limit set for POS operators.
On November 29, CBN Governor Olayemi Cardoso had urged bank customers to report any difficulties with withdrawals through designated phone lines. Prior to these developments, the financial regulator had already directed banks to prioritize ATM cash disbursement or face penalties for non-compliance.
