The Central Bank of Nigeria recently announced that it has taken decisive action against nine deposit money banks for failing to comply with its cash distribution guidelines. These banks were fined ₦150 million each for their failure to provide naira notes to customers through ATMs during the festive season, despite repeated warnings from the CBN.
The affected banks include Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank. The CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, emphasized the importance of ensuring seamless cash flow for maintaining public trust and stability. She warned that the CBN would not hesitate to impose further sanctions on any institution found violating the cash circulation guidelines.
In an effort to combat cash hoarding and rationing, the CBN has committed to monitoring bank branches and point-of-sale operators. The apex bank has also collaborated with law enforcement agencies to crack down on POS operators who engage in illegal cash sales or exceed the daily cumulative withdrawal limit of ₦1.2 million. These operators may face legal action for their non-compliance.
Back in September 2024, the CBN instructed all banks to ensure cash availability at ATMs nationwide, following numerous complaints from Nigerians about difficulties accessing cash. Banks that failed to comply with this directive were warned of potential sanctions, and the recent fines levied on the nine banks in question could be just the beginning.
Furthermore, the CBN’s directive also led to a reduction in the amount of cash that individuals could access through PoS agents. Daily withdrawal limits were set at ₦20,000 for individuals and ₦1.2 million for agents, with weekly limits of ₦100,000 for individuals. These measures were put in place to strengthen the country’s financial system and prevent abuse of cash distribution channels.
Overall, the CBN remains committed to upholding cash distribution guidelines and ensuring the smooth flow of currency within the Nigerian banking sector. By holding banks and financial institutions accountable, the CBN aims to maintain public trust and financial stability in the country.
