The Central Bank of Nigeria (CBN) has imposed fines totaling ₦1.35 billion on nine Deposit Money Banks (DMBs) for failing to provide adequate naira notes through Automated Teller Machines (ATMs) during the recent festive season.
Each bank was fined ₦150 million following spot checks that revealed non-compliance with the CBN’s cash distribution guidelines. The affected 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, and Sterling Bank Plc.
This enforcement action follows repeated warnings from the CBN to financial institutions to ensure cash availability, especially during periods of high demand. The central bank has communicated that the fines will be debited directly from the respective banks’ accounts with the CBN.
In addition to the fines, the CBN is intensifying its monitoring efforts to scrutinize cash hoarding and rationing at bank branches and by Point-of-Sale (POS) operators. The bank is collaborating with security agencies to crack down on illegal cash sales and enforce POS operators’ daily cumulative withdrawal limit of ₦1.2 million.
CBN Governor Olayemi Cardoso, in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to adhere strictly to cash distribution policies or face severe penalties.
He underscored the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs, stating, “We also recognize the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians. To address this, we are conducting spot checks across Deposit Money Banks (DMBs) and will impose penalties on underperforming institutions.”
The CBN has also issued a circular warning that any Deposit Money Bank or financial institution found facilitating the illicit flow of mint banknotes to currency hawkers will face a fine of ₦150 million per offending branch. This measure aims to curb the commodification of naira banknotes, which impedes efficient cash distribution to the public.
The central bank has noted with dismay the prevalence of illicit flows of mint banknotes to currency hawkers and other unscrupulous agents. To combat this, the CBN will intensify periodic spot checks in banking halls and ATMs and deploy mystery shoppers to identified cash hawking spots nationwide. Financial institutions are urged to strengthen controls around their cash management processes to prevent exploitation for illegal transactions.
The CBN’s actions reflect its determination to enforce compliance with cash distribution guidelines and ensure that there are no ATM cash shortages particularly during peak periods. Financial institutions are reminded that further violations will attract swift and decisive sanctions as the central bank continues its oversight to maintain economic stability.
Members of the public who are unable to obtain cash over-the-counter or through ATMs are encouraged to report such instances using the designated reporting channels provided by the CBN. This initiative is part of the central bank’s efforts to ensure that financial institutions serve the needs of the populace effectively.
Effective December 1, 2024, customers are encouraged to report any difficulties withdrawing cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states. Guidelines will be distributed widely to raise public awareness. We also urge full regulatory compliance by all stakeholders, including Mobile Money Operators and PoS Agents, to promote digital transaction channels and improve service delivery. I repeat, financial institutions found engaging in malpractices or deliberate sabotage will face stringent penalties,” he added.
The CBN’s recent enforcement actions highlight its commitment to ensuring that banks comply with regulations designed to facilitate efficient cash distribution and avoid ATM cash shortages. By imposing substantial fines and increasing monitoring efforts, the central bank aims to deter non-compliance and promote practices that support economic stability and public trust in the financial system.
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