The Central Bank of Nigeria (CBN) has imposed a fine of ₦150 million each on nine Deposit Money Banks (DMBs) for failing to make cash available via Automated Teller Machines (ATMs) during the recent festive season. This enforcement action, which totals ₦1.35 billion, followed spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.
The banks affected by this sanction are:
- 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 (UBA) Plc
- Sterling Bank Plc
The fines will be debited directly from the banks’ accounts with the CBN.
CBN’s Official Statement
In a press release issued on Tuesday, the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, emphasized the CBN’s zero-tolerance policy toward cash flow disruptions.
The statement read:
“In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria (CBN) has sanctioned Deposit Money Banks (DMBs) for failing to make Naira notes available through automated teller machines (ATMs) during the yuletide season.
“Each bank was fined ₦150 million for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. 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.”
Mrs. Sidi Ali reiterated the importance of uninterrupted cash availability:
“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.”
The CBN highlighted its commitment to preventing cash disruptions, especially during periods of high demand, and warned banks to adhere to cash distribution policies to avoid further penalties.
To ensure compliance, the CBN has ramped up its monitoring efforts, particularly against cash hoarding and rationing by bank branches and Point-of-Sale (POS) operators. Collaborating with security agencies, the apex bank is also cracking down on illegal cash sales and enforcing the ₦1.2 million daily withdrawal limit for POS operators.
Mrs. Sidi Ali stated:
“The CBN’s investigations and monitoring will continue to scrutinize cash hoarding and rationing at bank branches and by Point-of-Sale (POS) operators. We are working with security agencies to address these violations and ensure strict enforcement of the POS daily withdrawal limit.”
The fines underscore the importance of regulatory compliance and customer satisfaction. By holding banks accountable, the CBN aims to enhance cash distribution efficiency and ensure that Nigerians have uninterrupted access to cash during critical periods.
It’s worth noting that this enforcement aligns with the CBN’s earlier warnings in 2023 about penalties for banks failing to dispense cash through ATMs. In November, the bank also encouraged customers to report cash withdrawal difficulties to designated state-specific hotlines and emails starting December 1, 2024.
This move reaffirms the CBN’s commitment to improving financial services and safeguarding economic stability.