The Central Bank of Nigeria (CBN) has fined nine commercial banks a total of N1.35 billion for failing to provide sufficient cash through Automated Teller Machines (ATMs) during the 2024 festive season.
Each bank has been penalized N150 million after spot checks revealed non-compliance with CBN’s cash distribution guidelines.
The banks involved are Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank. The fines will be deducted directly from the banks’ accounts with the CBN.
In a statement released on Tuesday, Mrs. Hakama Sidi, the acting Director of Corporate Communications at the CBN, emphasized the regulator’s commitment to ensuring cash availability. “The CBN will not tolerate any disruptions in cash flow, particularly during high-demand periods like the festive season,” she said.
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Sidi highlighted that the CBN had issued repeated warnings to the banks to ensure cash availability through ATMs. The fines follow these warnings, as well as spot checks revealing shortages of Naira notes.
The CBN also made it clear that further sanctions could be imposed on institutions failing to comply with cash circulation policies. The regulator is also working closely with security agencies to address illegal cash sales and ensure banks follow the N1.2 million daily withdrawal limit for Point-of-Sale (POS) operators.
The CBN has pledged to intensify efforts to monitor cash distribution and prevent rationing at bank branches and ATMs. It also encourages customers to report any issues with ATM withdrawals starting December 2024 through designated contact channels.
In recent months, the CBN has increased enforcement of its cash distribution policies, including penalties for banks that fail to dispense cash via ATMs. The goal is to guarantee sufficient cash circulation across Nigeria, especially during periods of high demand.
