The Central Bank of Nigeria (CBN) announced yesterday that it fined nine banks a total of ₦1.35 billion for failing to ensure the availability of Naira notes through ATMs during the festive season.
The apex bank stated that the penalties underscore its zero tolerance for cash flow disruptions.
Each bank was fined ₦150 million for violating the CBN’s cash distribution guidelines, following spot checks on their branches. This enforcement action comes after repeated warnings from the CBN to financial institutions to ensure uninterrupted cash availability, especially during peak demand periods.
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.
The fines will be directly debited from the banks’ accounts with the CBN, according to communication with the institutions.
Confirming the development, Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, emphasized, “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.”
“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she added.
The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators. The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.
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 strictly adhere to cash distribution policies or face severe penalties. He underscored the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso said.
The CBN called on all financial institutions to adhere to its guidelines, cautioning that any further violations would result in prompt and decisive penalties.
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