The Central Bank of Nigeria (CBN) has imposed sanctions on nine Deposit Money Banks (DMBs) for failing to ensure the availability of Naira notes via automated teller machines (ATMs) during the 2024 festive season.
According to a statement on Tuesday by the Acting Director of Corporate Communications at the CBN, Hakama Ali, each bank was fined N150 million for breaching the apex bank’s cash distribution guidelines.
The enforcement followed spot checks on the affected banks’ branches during the yuletide, a time of high demand for cash.
Among those sanctioned were 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.
The bank said the sanctions underscored the bank’s commitment to maintaining public trust and ensuring economic stability.
“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability,” she stated.
The CBN said the fines would be deducted directly from the accounts of the sanctioned banks held with the apex bank.
The move is part of broader efforts to address cash shortages and ensure compliance with cash circulation policies.
The CBN also revealed that its investigations and monitoring activities would continue to target issues such as cash hoarding and rationing, particularly by Point-of-Sale (POS) operators.
The enforcement action comes amid concerns about operational violations by financial institutions, including excessive cash withdrawals beyond the daily POS limit of N1.2 million.
The CBN had warned banks to comply with cash distribution policies or face stiff penalties.
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At the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, CBN Governor Olayemi Cardoso emphasised the need for banks to prioritise customer trust and operational efficiency.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Mr Cardoso stated.
He reiterated the central bank’s resolve to maintain a robust cash buffer to meet the needs of Nigerians, particularly during critical periods.
The CBN urged all financial institutions to adhere to its guidelines, warning that future breaches would attract swifter and more decisive actions.
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