CBN Sanctions Banks For Naira Shortage During Yuletide.
The Central Bank of Nigeria (CBN) has taken decisive action against several Deposit Money Banks (DMBs) for their failure to ensure adequate Naira note availability through ATMs during the festive season.
According to Hakama Sidi-Ali, the Director of Corporate Communications at the CBN, this action underscores a strict policy of zero tolerance towards any disruptions in cash flow. The banks involved in this enforcement 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 of these institutions has been fined N150 million for non-compliance with the CBN’s cash distribution guidelines, following surprise inspections conducted at various branches. Sidi-Ali highlighted that the fines would be directly debited from the banks’ accounts held with the apex bank, reflecting the seriousness of the issue.
“The enforcement comes after repeated warnings from the CBN to all financial institutions to ensure seamless cash availability, especially during peak demand periods,” Sidi-Ali stated. She further emphasized the importance of maintaining public trust and economic stability through effective cash flow management.
The CBN is committed to ongoing scrutiny, not only of banks but also of Point-of-Sale (POS) operators, to prevent cash hoarding and rationing. Additionally, the bank is collaborating with security agencies to combat illegal cash sales and ensure compliance with operational guidelines, including a daily withdrawal limit of N1.2 million for POS operators.
Sidi-Ali warned that further violations would lead to swift and decisive sanctions, urging all financial institutions to adhere to the set guidelines.
This move comes after a stern warning from CBN Governor, Yemi Cardoso, during the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024. Cardoso had stressed the importance of banks adhering to cash distribution policies to maintain a robust cash buffer for the public’s needs.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso had remarked, reinforcing the CBN’s dedication to these principles.
This action by the CBN is seen as a strong message to all financial institutions to prioritise public service and compliance with regulatory requirements.
