Nigeria’s CBN Penalizes Nine Banks N1.35 Billion for Yuletide ATM Cash Shortages
The Central Bank of Nigeria (CBN) has imposed a cumulative fine of N1.35 billion on nine commercial banks for failing to ensure the availability of cash at their Automated Teller Machines (ATMs) during the 2023 festive season. Each bank was penalized N150 million following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.
The affected financial institutions 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
- Sterling Bank Plc
CBN’s Position on Cash Availability
According to the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, the sanctions underscore the regulator’s zero-tolerance policy for cash flow disruptions.
“In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines during the yuletide season,” the statement read.
Mrs. Sidi-Ali further explained that the enforcement action followed repeated warnings to banks about the importance of cash availability during high-demand periods, such as the festive season.
The penalties were levied in line with the CBN’s cash distribution guidelines and will be directly debited from the affected banks’ accounts with the apex bank. Mrs. Sidi-Ali emphasized that the CBN remains resolute in imposing further sanctions on any financial institution that violates these guidelines.
In addition to the fines, the CBN reiterated its commitment to monitoring cash hoarding and rationing activities at bank branches and Point-of-Sale (POS) terminals. The apex bank is collaborating with security agencies to tackle illegal cash sales and enforce compliance with the daily withdrawal limit of N1.2 million for POS operators.
This latest action highlights the CBN’s resolve to ensure seamless cash circulation and enhance the efficiency of the banking system during critical periods.
