The Central Bank of Nigeria (CBN) has imposed a hefty fine of N1.35 billion on nine Deposit Money Banks (DMBs) for failing to ensure the availability of Naira notes at Automated Teller Machines (ATMs) during the festive season. Each bank involved has been fined N150 million for non-compliance with the CBN’s cash distribution guidelines, following recent spot checks of their branches.
According to Mrs. Hakama SidiAli, the Acting Director of the Corporate Communications Department at CBN, the enforcement is critical to maintaining public trust and economic stability. She stressed the importance of ensuring smooth cash flow, particularly during high-demand periods like the holiday season.
The banks penalized in this action 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 (UBA) Plc
- Sterling Bank Plc
These institutions will have the fines debited directly from their accounts with the CBN. The central bank reiterated that it will not hesitate to impose further sanctions on banks found in violation of its cash circulation guidelines.
The move comes after repeated warnings from the CBN to financial institutions, urging them to prioritize seamless cash availability. The CBN has emphasized that its investigations into cash hoarding, rationing, and violations by Point-of-Sale (POS) operators will continue. Security agencies are also being mobilized to tackle illegal cash sales and violations of withdrawal limits, which are set at N1.2 million daily for POS operators.
During the November 2024 Annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria (CIBN), CBN Governor Mr. Olayemi Cardoso warned banks about the consequences of failing to adhere to cash distribution policies. He reassured Nigerians that the CBN is committed to ensuring a stable and trustworthy financial system.
Further to its commitment to enforcing compliance, the CBN had earlier issued a directive on December 14, warning that any financial institution found facilitating the illicit flow of mint Naira notes to currency hawkers or other economic agents would be fined N150 million per branch. These penalties could escalate, with more severe actions as per the Bank and Other Financial Institutions Act (BOFIA) 2020.
The CBN is also stepping up its efforts to address cash hoarding, rationing, and the unlawful sale of banknotes through spot checks and mystery shopping across the country. The central bank has urged all financial institutions to strengthen their internal controls and ensure efficient cash management, both at branches and ATMs.
Finally, the CBN has encouraged the public to report any instances of ATM or Over-the-Counter cash unavailability using its designated reporting channels.
