Abuja: The Central Bank of Nigeria (CBN) has announced sanctions against nine Deposit Money Banks (DMBs) for their failure to dispense Naira notes through automated teller machines (ATMs) during the yuletide season. This move by the CBN underscores its strict stance on ensuring uninterrupted cash availability across the country.
According to News Agency of Nigeria, a statement by Hakama Sidi-Ali, Director of CBN’s Corporate Communications Department, highlighted that the sanctions are a clear indication of the bank’s zero tolerance for cash flow disruptions. 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. Each bank has been fined N150 million for non-compliance with the CBN’s cash distribution guidelines, following spot checks on their branches.
Sidi-Ali stated that the enforcement action was taken after repeated warnings to financial institutions to ensure seamless cash availability, especially during high-demand periods. She noted that the fines would be directly debited from the banks’ accounts with the apex bank. The CBN emphasized the importance of maintaining public trust and economic stability through seamless cash flow and warned of further sanctions for any institution found violating its cash circulation guidelines.
The CBN’s ongoing investigations and monitoring efforts aim to scrutinize cash hoarding and rationing at bank branches and by Point-of-Sale (POS) operators. Sidi-Ali also mentioned that the CBN is collaborating with security agencies to address illegal cash sales and operational violations, including enforcing the daily cumulative withdrawal limit of N1.2 million for POS operators.
The News Agency of Nigeria reports that CBN Governor Yemi Cardoso had previously warned banks to adhere strictly to cash distribution policies or face severe penalties. During his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, Cardoso reiterated the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs, emphasizing the importance of fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system.