The Central Bank of Nigeria on Tuesday revealed that it has imposed sanctions on nine deposit money banks for non-compliance with its cash distribution guidelines.
Each bank was fined ₦150 million for failing to make naira notes available to customers via automated teller machines during the festive period, despite repeated warnings, the CBN said.
Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank were among the banks affected. This development was contained in a press release and confirmed by the apex bank’s Acting Director of Corporate Communications, Hakama Sidi Ali.
“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 noted.
The CBN pledged to continue to monitor bank branches and point-of-sale operators in an effort to mitigate cash hoarding and rationing. It also revealed that it has 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, adding that they may face legal action.
In September 2024, the CBN directed all banks to ensure cash availability at ATMs across the country. This became necessary with Nigerians frequently complaining of an inability to access cash at ATMs. At the time, the CBN warned that banks that fell foul of this rule would face sanctions and the nine affected banks could be the first of many more.
That decision was followed by a reduction in the amount of cash accessed through PoS agents, who have become a key part of the country's financial system. The CBN's directive ensured that individuals could not access more than ₦20,000 daily or ₦100,000 weekly. Meanwhile, agents were restricted to ₦1.2 million daily.