The Central Bank of Nigeria, (CBN) has sanctioned some Deposit Money Banks for failing to make Naira notes available through automated teller machines (ATMs), during the yuletide season.
Although some analysts see the development as a demonstration of zero tolerance message for cash flow disruptions, they equally say the apex bank needs to up its game in surveillance and monitoring as cases of fragrant disobedience abound everywhere within the system.
Consequently, the affected banks, including Fidelity, First Bank, Union and Sterling were fined N150 million for non-compliance, in line with the apex bank’s cash distribution guidelines.
The action was taken following spot checks on their branches.
Other banks are Keystone, Globus, Providus, Zenith and United Bank for Africa, (UBA).
According to Channels Television, the enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
Metrobusinessnews.com, (MBN) gathered that the fines would be debited directly from their accounts with the apex bank.
Channels Television further said the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali confirmed the development, noting that “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,” she stated.
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The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.
The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.
Governor Olayemi Cardoso, in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to strictly adhere to cash distribution policies or face severe penalties.
He underscored the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso said.
The CBN urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions
