CBN Fines Nine Banks ₦150m Over ATM Cash Shortages

In a bold move to reinforce its cash circulation policies, the Central Bank of Nigeria (CBN) has imposed fines of ₦150 million on several Deposit Money Banks (DMBs) for failing to ensure the availability of Naira notes via automated teller machines (ATMs) during the busy yuletide season.

The penalties reflect the CBN’s commitment to maintaining seamless cash flow, particularly during high-demand periods, and serve as a clear warning to financial institutions across the country.

The banks penalized for non-compliance 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 fines, totaling ₦150 million per institution, were debited directly from their accounts with the apex bank following spot checks on their branches.

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Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali, emphasized the importance of uninterrupted cash availability to maintain public trust and economic stability: “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 central bank’s investigation revealed cash hoarding and rationing practices, both at bank branches and by Point-of-Sale (POS) operators, as significant contributors to cash flow disruptions.

The CBN has pledged to intensify its monitoring efforts, working closely with security agencies to address illegal cash sales and operational violations. This includes strict enforcement of the POS operators’ daily cumulative withdrawal limit of ₦1.2 million.

Governor Olayemi Cardoso also addressed these issues during the 2024 Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN), warning financial institutions to comply with cash distribution guidelines or face severe consequences.

He reiterated the CBN’s focus on 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.”