Cash Scarcity: CBN Sanctions 9 Banks N1.35bn

Nine banks have been fined N1.35 billion by the Central Bank of Nigeria(CBN) for not making cash available at their Automated Teller Machines (ATM) during the end of year festivities.
This follows the riot act read to banks by the governor of the Central Bank of Nigeria(CBN) on cash availability.
The nine banks were; 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, and had each been fined N150 million for defaulting.
NATIONAL ECONOMY reported scarcity of cash at many ATMs during the yuletide as customers scrambled to get cash from banking agent, popularly known as Point of Sale (POS) operators on Christmas eve.
In a statement issued by the CBN on Tuesday night, the apex bank said it had sanctioned the banks for failing to make Naira notes available through automated teller machines (ATMs), during the yuletide season as a clear message of zero tolerance for cash flow disruptions.
It noted that “each bank was fined N150 million 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.
According to the apex bank, the fines would be debited directly from the accounts of the affected banks with CBN.
Acting director of corporate communications at the CBN, Mrs. Hakama Sidi Ali confirming the development, stated that, “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,” she said adding that the CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.
“The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million,” she said.
Governor Olayemi Cardoso, in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to strictly adhere to cash distribution policies or face severe penalties.
He underscored the CBN’s commitment to 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,” Cardoso said.
The CBN urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.