The CBN has slammed nine Nigerian deposit money banks with a fine of ₦150 million each. This follows their failure to make available naira notes to customers in ATM machines during the Christmas holiday.
The affected banks include Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa and Sterling Bank.
The fine is in line with the CBN’s drive for even cash distribution and ending the cash scarcity problem across the country.
Announcing the sanctions, the Acting Director of Corporate Communications, Hakama Sidi Ali noted, “Ensuring seamless cash flow is paramount to managing public trust and stability. The CBN will not hesitate to impose further sanctions on any institution found violating the cash circulation guidelines,”
She also noted that the CBN plans to continue monitoring bank branches and point-of-sale operators in an effort to reduce cash hoarding and rationing.
The bank has also partnered with law enforcement agencies to crack down on POS operators engaging in illegal cash sales and exceeding the daily cumulative withdrawal limit of ₦1.2 million. Defaulting banks may face legal action.
In September 2024, the CBN directed banks to ensure that customers are able to withdraw from their ATMs. This was part of the CBN’s efforts to ensure adequate cash distribution. It also announced that banks found wanting of this directive would be penalised.
In November 2024, to further facilitate its cash circulation drive, the CBN asked bank customers to report any cash withdrawal issues they experienced in banking halls or ATMs. The reports were to be made through designated state-specific phone numbers and email addresses from December 1st of the same year.
Also in December, the CBN released a circular to the effect that it would impose a N150 million fine, at first instance, on any erring bank or financial institution that facilitate, aid or abet by direct actions or inactions, illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes. It also promised to carry out periodic, unannounced checks to bank branches to ensure compliance with these directives.
The current sanctions are a testament to the Apex bank’s drive to ensure free the flow of bank notes in the country. It is hoped this fine will further motivate banks to comply with the CBN’s directives to achieve a better economy.