CBN Fines Nine Banks N150m Each Over Cash Shortage
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has imposed fines of N150 million each on nine Deposit Money Banks (DMBs) for failing to ensure the availability of Naira notes through Automated Teller Machines (ATMs) during the festive season.
This enforcement action follows repeated warnings from the CBN to financial institutions to guarantee consistent cash availability, particularly during periods of high demand. The apex bank emphasized its commitment to addressing activities that disrupt cash flow and undermine public trust.
In a statement, the Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, said, “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.”
The banks affected 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, totaling N1.35 billion, were imposed after inspections revealed non-compliance with the CBN’s cash distribution guidelines. The CBN stated that the penalties would be debited directly from the accounts of the affected banks.
Mrs. Ali further warned, “The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.” She added that the CBN would continue to monitor cash hoarding and rationing at bank branches and by Point-of-Sale (POS) operators.
The Central Bank is also collaborating with security agencies to address illegal cash sales and enforce the daily cumulative withdrawal limit of N1.2 million for POS operators.
Governor Olayemi Cardoso, speaking at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, cautioned banks to strictly adhere to cash distribution policies or face significant penalties. He reaffirmed the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs.
“Our focus remains on building trust, ensuring stability, and facilitating seamless cash circulation throughout the financial system,” Cardoso said.
The CBN has urged all financial institutions to comply fully with its cash distribution guidelines, warning that any further violations would attract swift and severe sanctions.
