CBN Imposes ₦150m Fine on Nine Banks Over ATM Cash Scarcity

The Central Bank of Nigeria (CBN) fines nine banks ₦150 million each for failing to ensure adequate cash availability at ATMs, highlighting growing concerns about banking services.

In a strong statement demonstrating zero tolerance for disruptions in cash flow, the Central Bank of Nigeria (CBN) has penalized Deposit Money Banks (DMBs) for their failure to supply Naira notes through automated teller machines (ATMs) during the holiday season.

Each bank received a fine of ₦150 million for not adhering to the CBN’s cash distribution guidelines, as identified during spot checks on their branches.

The enforcement action comes after the CBN issued multiple warnings to financial institutions, urging them to ensure smooth cash availability, especially during times of high demand.

The banks impacted are 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 (UBA) Plc., and Sterling Banks.

Discussions with the banks indicated that the penalties would be directly withdrawn from their accounts at the central bank.

Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, confirmed this development and emphasized that “Maintaining smooth cash flow is essential for upholding public trust and economic stability.”

She stated that the CBN would not hesitate to impose additional sanctions on any institution found violating its cash circulation guidelines.

The CBN will persist in its investigations and monitoring efforts to closely examine cash hoarding and rationing at both bank branches and by Point-of-Sale (POS) operators.

The Central Bank is collaborating with security agencies to address illegal cash sales and operational breaches, which includes ensuring that POS operators adhere to the daily cumulative withdrawal limit of N1.2 million.

During his speech at the Annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, Governor Olayemi Cardoso cautioned banks to rigorously comply with cash distribution regulations or face significant penalties.

He emphasized the CBN’s dedication to keeping a strong cash reserve to fulfill Nigerians’ requirements. “Our priority is building trust, ensuring stability, and providing smooth cash flow throughout the financial system,” stated Cardoso.

The CBN encouraged all financial institutions to adhere to its guidelines, cautioning that any additional violations would result in prompt and decisive penalties.