In a clear demonstration of zero tolerance for cash flow disruptions, the Central Bank of Nigeria (CBN) has sanctioned nine Deposit Money Banks (DMBs) for failing to ensure the availability of Naira notes through ATMs ( ATM) during the Christmas season.
Each bank was fined £150 million for non-compliance, in accordance with the CBN's cash distribution guidelines, following random inspections carried out at 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.
This enforcement action comes after repeated warnings by the CBN to financial institutions to ensure smooth availability of cash, especially during periods of high demand.
Communication with the sanctioned banks revealed that the fines would be debited directly from their accounts at the main bank.
CBN Acting Director of Corporate Communications Hakama Sidi Ali confirmed the development, saying: “Ensuring smooth cash flow is paramount to maintaining public confidence and economic stability.
“The CBN will not hesitate to impose further sanctions on any institution that violates its cash circulation guidelines,” he added.
READ ALSO: Ukraine carries out the “most massive” attack and hits Russian territory
CBN investigations and monitoring will continue to address issues of cash hoarding and rationing, both at bank branches and by point-of-sale (POS) operators.
Additionally, the Central Bank is collaborating with security agencies to crack down on illegal cash sales and operational violations, including enforcing point-of-sale operators' daily cumulative withdrawal limit of ₦1.2 million.
Governor Olayemi Cardoso, in his speech at the Chartered Institute of Bankers of Nigeria (CIBN) Annual Bankers Dinner in November 2024, warned banks to strictly comply with cash distribution policies or face severe penalties.
He highlighted the CBN's commitment to maintaining a strong cash cushion to meet the needs of Nigerians.
“Our focus remains on building confidence, ensuring stability and ensuring the smooth circulation of cash throughout the financial system,” Cardoso said.
The CBN has urged all financial institutions to comply with its guidelines, warning that further violations will attract swift and decisive sanctions.