After months of disquiet and Federal Government’s ostrich disposition over the scarcity of naira notes, the Central Bank of Nigeria (CBN) reacts to Tentacle’s Cover Story of December 22, 2024 with the caption “FG Silent As Cash Crisis Worsens”, as it sanctions nine Deposit Money Banks (DMBs) over their failure to dispense enough cash to customers through Automated Teller Machines (ATMs)
By Udoka Ekeleme, Abuja
The Central Bank of Nigeria (CBN) recently sanctioned some Deposit Money Banks (DMBs) for failure to disburse cash via Automated Teller Machine (ATM) during the Yuletide.
The apex bank said the action was a clear indication of its ‘no nonsense’ stance on ‘dry’ ATMs dotting the country.
A statement issued by the bank in Abuja reads: “Each bank was fined N150 million for non-compliance in line with the CBN’s cash distribution guidelines, following spot checks on their branches.”
It said the enforcement followed repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
The affected financial institutions include Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa and Sterling Bank.
Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.
Confirming the development, CBN’s Acting Director of Corporate Communications, Hakama Ali, stated: “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 bank disclosed that its investigations and monitoring would continue to scrutinise cash hoarding and rationing, both at bank branches and by Point of Sale (POS) operators.
“CBN is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million,” it added.
The apex bank Governor, Olayemi Cardoso, had in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to strictly adhere to cash distribution policies or face severe penalties.
He underscored the CBN’s commitment to robust cash buffer to meet Nigerians’ needs, adding: “Our focus remains on fostering trust, ensuring stability and guaranteeing seamless cash circulation across the financial system.”
The bank urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.
