The Central Bank of Nigeria has imposed fines totaling N1.35 billion on nine deposit money banks for failing to ensure cash availability at automated teller machines during the festive season.
The affected banks are Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank.
In a statement released on Tuesday, Hakama Sidi Ali, acting director of corporate communications at the CBN, explained that each bank was fined N150 million after spot checks revealed noncompliance with the CBN’s cash distribution guidelines.
Sidi Ali emphasized that the fines would be directly debited from the banks’ accounts with the CBN. “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,” the statement read.
The CBN had previously issued repeated warnings to financial institutions, urging them to ensure seamless cash availability, particularly during high-demand periods. Sidi Ali also warned that the CBN would not hesitate to impose additional sanctions on any institution found violating its cash circulation guidelines.
Furthermore, the CBN announced plans to intensify monitoring of cash hoarding and rationing at bank branches and point-of-sale terminals. The regulator also stated its intention to collaborate with security agencies to address illegal cash sales and enforce compliance with the daily withdrawal limit of N1.2 million for POS operators.
Earlier, on November 29, CBN Governor Olayemi Cardoso had encouraged bank customers to report any withdrawal challenges through designated phone numbers. The CBN had previously directed banks to prioritize cash disbursement through ATMs or face penalties.
