The Central Bank of Nigeria (CBN) has fined nine Deposit Money Banks (DMBs) a total of N1.35 billion for failing to ensure the availability of Naira notes through ATMs during the yuletide season.
Each of the affected banks was fined N150 million for non-compliance with CBN’s cash distribution guidelines, following spot checks on their branches.
CBN’s acting Director of Corporate Communications, Mrs. Hakama SidiAli, confirmed the development, emphasizing that “ensuring seamless cash flow is paramount to maintaining public trust and economic stability.”
The Central Bank of Nigeria (CBN) explained that the fines were imposed after repeated warnings to financial institutions to ensure seamless cash availability, particularly during high-demand periods.
The affected banks 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 CBN also clarified that the fines would be directly debited from the banks’ accounts with the apex bank.
Sidi Ali said, “The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”
She added that the CBN’s investigations and monitoring will continue to scrutinisecash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.
She also said the central bank was 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.
In his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, CBN Governor, Mr. Olayemi Cardoso, 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, adding “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system.”
The CBN urged all financial institutions to comply with its guidelines, warning that further violations would result in swift and decisive sanctions.
On December 14, the CBN announced it would impose a N150 million fine on any Deposit Money Bank or financial institution found facilitating or aiding the illicit flow of mint banknotes to currency hawkers. This measure was detailed in a circular signed by CBN officials Solaja Olayemi and Dr. Isa-Olatinwo Aisha.
The fine would be applied per erring branch, with stronger penalties under the BOFIA 2020 for repeated offenses. The CBN expressed concern over the growing illicit flow of mint banknotes, which disrupts effective cash distribution.
The apex bank vowed to continue its spot checks and mystery shopping across banking halls, ATMs, and cash hawking spots to enforce compliance. It also urged DMBs to strengthen cash management processes and procedures.
The CBN emphasized that customers who experience difficulties obtaining cash Over-the-Counter or through ATMs should report these issues via the designated channels.
