The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine Deposit Money Banks (DMBs) for failing to ensure adequate availability of Naira notes through Automated Teller Machines (ATMs) during the yuletide season.

The banks are were fined N150 million for non-compliance with the CBN’s cash distribution guidelines following spot checks conducted at 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.

A statement from the CBN confirmed the enforcement action, stressing the apex bank’s commitment to guaranteeing seamless cash flow, particularly during periods of high demand.

The apex bank revealed that the fines would be debited directly from the affected banks’ accounts.

The Acting Director, Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, stated: “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.”

The CBN also announced ongoing investigations into cash hoarding and rationing by bank branches and Point-of-Sale (POS) operators. 

Ali said the CBN was collaborating with security agencies to address illegal cash sales and enforce the POS operators’ daily cumulative withdrawal limit of ₦1.2 million.

Governor Olayemi Cardoso, at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned financial institutions to strictly adhere to cash distribution policies or face severe penalties. 

He reiterated the CBN’s commitment to maintaining trust, stability, and efficient cash circulation within the financial system.

 

The statement read, “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines, during the yuletide season.

“Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.

“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.”

The apex bank had previously warned banks to comply with cash distribution policies.

The CBN has pledged to intensify monitoring of cash hoarding and rationing at bank branches and Point-of-Sale terminals.

The regulator was collaborating with security agencies to address illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2m for POS operators.

Last September, the CBN announced plans to penalise banks failing to dispense cash via ATMs as part of efforts to ensure adequate cash circulation.

In November, the bank urged customers to report ATM and branch cash withdrawal issues starting December 1, 2024, through designated state-specific phone numbers and email addresses.