The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine Deposit Money Banks (DMBs) for failing to provide naira notes through automated teller machines (ATMs) during the festive Yuletide season.
Each bank will pay a penalty of ₦150 million for non-compliance, as per the CBN’s cash distribution guidelines, following spot checks conducted at their branches.
This enforcement action comes after repeated warnings from the CBN, urging financial institutions to ensure seamless cash availability, particularly during periods of high demand.
The banks penalized 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.
Communication with these banks confirmed that the fines will be debited directly from their accounts at the apex bank.
Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, confirmed the sanctions and stated, “The CBN will not hesitate to impose further penalties on any institution found violating its cash circulation guidelines.”
She indicated that the apex bank’s investigations and monitoring efforts would continue to target cash hoarding and rationing, both at bank branches and among Point-of-Sale (POS) operators.
“The Central Bank is collaborating with security agencies to combat illegal cash sales and operational violations, including the enforcement of POS operators’ daily cumulative withdrawal limit of N1.2 million.”
In November 2024, during the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN), Governor Olayemi Cardoso warned banks to adhere strictly to cash distribution policies or risk severe penalties.
He emphasized the CBN’s commitment to maintaining a robust cash buffer to meet the needs of Nigerians, stating, “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation throughout the financial system.”
The CBN urged all financial institutions to comply with its guidelines, warning that further violations would lead to swift and decisive sanctions.
