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CBN Imposes N1.35 Billion Fine on Nine Banks for Cash Availability Failures

The Central Bank of Nigeria (CBN) has levied a N1.35 billion fine on nine Deposit Money Banks (DMBs) for failing to ensure sufficient Naira notes were available through Automated Teller Machines (ATMs) during the yuletide season.

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. Each bank was fined N150 million for non-compliance with the CBN’s cash distribution guidelines, following spot checks on their branches.

Point-of-Sale (POS) operators had recently expressed frustration over the scarcity of cash from both banks and ATMs, which disrupted their businesses. In response, many operators turned to market sellers and petrol station attendants, paying up to N2,000 for cash ranging from N100,000 to N200,000, while banks set daily withdrawal limits at N5,000. As a result, operators imposed fees of over 100% on customers to cover these costs.

Customers also voiced dissatisfaction with the limitation of ATM withdrawals to N20,000, with some paying up to N800 in Abuja to access that amount from POS operators. The situation was particularly dire in remote northern towns and villages with limited access to banking services.

Vice President Kashim Shettima, during his address at the Bankers Committee 2024 Annual Retreat in Abuja on December 6, called on the CBN and commercial banks to address the cash scarcity and arbitrary charges imposed by POS operators. Similarly, on December 11, the House of Representatives urged the CBN to intervene, citing the negative impact on economic activities and the hardship it caused Nigerians.

In response, the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, stated that the fines would be directly debited from the banks’ accounts with the apex bank. She further warned that additional sanctions would be imposed on any bank violating the CBN’s cash circulation guidelines. The CBN is also collaborating with security agencies to combat illegal cash sales and ensure compliance with POS operators’ daily withdrawal limits.

CBN Governor Olayemi Cardoso, speaking at the Chartered Institute of Bankers of Nigeria (CIBN) Annual Bankers’ Dinner in November, stressed the importance of banks adhering strictly to cash distribution policies, warning of severe penalties for violations. He reaffirmed the CBN’s commitment to maintaining a strong cash buffer to meet the needs of Nigerians.

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