Deposit Money Banks (DMBs) in Nigeria have promptly responded to penalties imposed by the Central Bank of Nigeria (CBN) by ensuring their Automated Teller Machines (ATMs) are stocked with cash. Observations on Wednesday, a day after the sanctions were announced, revealed that most banks had begun complying with the directive.
On Tuesday, the CBN levied fines of ₦150 million each on nine banks for failing to maintain cash availability at ATMs during the festive season. These penalties followed spot checks aimed at enforcing adherence to the CBN’s cash distribution guidelines.
The banks who were sanctioned 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 (UBA)
- Sterling Bank Plc
Visits to several bank branches in Lagos revealed that most ATMs were dispensing cash. ATMs at UBA, Zenith Bank, and Fidelity Bank were operational while ATMs at First Bank of Nigeria were not dispensing cash at the time of the visit. However, customer activity at ATMs remained minimal, with sparse turnout observed.
For instance, at a Fidelity Bank branch, withdrawals were capped at ₦20,000 for Fidelity debit cardholders and ₦10,000 for customers using other banks’ cards. UBA branches reported some customer withdrawals, while other banks’ ATMs experienced no activity.
The CBN has further repeated its commitment to ensuring seamless cash flow across Nigeria. In a statement signed by Hakama Sidi Ali, acting director of corporate communications, the apex bank warned that further sanctions would be imposed on institutions violating cash circulation policies.
At the 2024 Chartered Institute of Bankers of Nigeria (CIBN) Annual Dinner, Olayemi Cardoso, the CBN governor, emphasized the importance of maintaining a robust cash distribution system; “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system.”
The CBN’s ongoing investigations will continue to target cash hoarding and rationing at bank branches and Point-of-Sale (POS) operators. Collaborating with security agencies, the CBN aims to combat illegal cash sales and ensure compliance with operational regulations, including the ₦1.2 million daily cumulative withdrawal limit for POS operators.
This swift enforcement action emphasizes the CBN’s resolve to maintain public trust and ensure economic stability through efficient cash distribution practices.
