The Central Bank of Nigeria (CBN) announced on Tuesday that it has imposed sanctions on nine deposit money banks for failing to comply with its cash distribution guidelines. Each of these banks has been fined ₦150 million for not making naira notes available to customers via automated teller machines (ATMs) during the festive period, despite repeated warnings from the CBN.
The banks affected by these sanctions include Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank. This information was detailed in a press release and confirmed by the CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali. “Ensuring seamless cash flow is paramount to managing public trust and stability. The CBN will not hesitate to impose further sanctions on any institution found violating the cash circulation guidelines,” Ali stated.
The CBN has pledged to continue monitoring bank branches and point-of-sale (POS) operators to mitigate issues related to cash hoarding and rationing. Additionally, the CBN has partnered with law enforcement agencies to crack down on POS operators engaging in illegal cash sales and those exceeding the daily cumulative withdrawal limit of ₦1.2 million. These operators may face legal action as a result.
In September 2024, the CBN directed all banks to ensure cash availability at ATMs across the country. This directive was issued in response to frequent complaints from Nigerians about their inability to access cash at ATMs. At that time, the CBN warned that banks failing to comply with this rule would face sanctions, and the nine banks currently penalized could be the first of many more to come.
Following this decision, the CBN also reduced the amount of cash that could be accessed through POS agents, who have become an integral part of the country’s financial system. The directive stipulated that individuals could not withdraw more than ₦20,000 daily or ₦100,000 weekly, while agents were restricted to a daily limit of ₦1.2 million. The CBN’s actions underscore its commitment to ensuring a smooth and reliable cash flow system, maintaining public trust, and upholding financial stability in Nigeria.
