ABUJA, Nigeria — In a strong statement against cash flow disruptions, the Central Bank of Nigeria (CBN) has imposed sanctions on nine Deposit Money Banks (DMBs) for failing to provide adequate Naira notes through automated teller machines (ATMs) during the high-demand yuletide season.
The CBN fined each bank ₦150 million for non-compliance with its cash distribution guidelines after conducting 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.
Enforcing Cash Flow Regulations
Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, confirmed the sanctions and emphasised the bank’s zero-tolerance stance on cash flow disruptions.
“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability,” Ali stated.
“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”
The fines were debited directly from the sanctioned banks’ accounts with the CBN.
The enforcement follows repeated warnings from the apex bank to financial institutions to ensure uninterrupted cash availability, especially during periods of heightened demand such as the holiday season.
Ongoing Monitoring and Crackdowns
The CBN has intensified monitoring to combat cash hoarding and rationing at bank branches and by Point-of-Sale (POS) operators.
It is also collaborating with security agencies to address illegal cash sales and ensure adherence to operational rules, including POS operators’ daily cumulative withdrawal limit of ₦1.2 million.
Governor Olayemi Cardoso reaffirmed the CBN’s commitment to maintaining cash circulation standards during his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso said.
He cautioned banks to strictly follow cash distribution policies or face severe penalties.
The CBN has urged all financial institutions to adhere to its cash distribution guidelines, warning that further breaches would attract decisive action.
As part of its broader efforts to maintain public trust in the financial system, the CBN continues to scrutinise cash flow operations to ensure the availability of funds for Nigerians and to prevent disruptions that could undermine economic stability.
