The Central Bank of Nigeria (CBN) has imposed fines on several Deposit Money Banks (DMBs) for failing to provide adequate naira notes through their automated teller machines (ATMs) during the yuletide season.
After spot checks conducted across their branches, each affected bank was fined ₦150 million for violating the CBN’s cash distribution guidelines. This move emphasizes the CBN’s resolve to ensure seamless cash availability, particularly during periods of high demand.
The sanctioned 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
- Sterling Bank Plc
The fines will be directly debited from the banks’ accounts with the CBN. Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali, confirmed the penalties, stating, “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.”
The CBN remains committed to addressing cash hoarding and rationing practices at bank branches and Point-of-Sale (POS) operations. Collaborating with security agencies, the apex bank is also cracking down on illegal cash sales and ensuring POS operators adhere to the daily cumulative withdrawal limit of ₦1.2 million.
CBN Governor Olayemi Cardoso, speaking at the Chartered Institute of Bankers of Nigeria (CIBN) annual bankers’ dinner in November 2024, emphasized the importance of compliance. He warned financial institutions to adhere strictly to 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.
The CBN has urged all financial institutions to align with its cash circulation guidelines to ensure effective service delivery to Nigerians. The apex bank warned that any further violations would result in swift and decisive actions.
