The Central Bank of Nigeria (CBN) has imposed a fine of N150 million on nine commercial banks for failing to ensure their Automated Teller Machines (ATMs) were stocked with cash during the holiday season.
The sanctioned banks include Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank.
According to the CBN, the fines will be directly debited from the affected banks’ accounts.
CBN spokesperson Hakama Sidi Ali, in a statement on Tuesday, described the action as necessary to uphold public trust and maintain economic stability.
“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. Further violations of cash distribution rules will attract stiffer penalties,” she warned.
The apex bank’s move follows inspections of bank branches that revealed non-compliance with cash circulation regulations despite repeated warnings.
In addition to the fines, the CBN is investigating allegations of cash hoarding by some banks and Point of Sale (POS) operators.
The regulator is collaborating with law enforcement agencies to curb the illegal sale of cash and ensure that POS operators adhere to the daily withdrawal limit of N1.2 million.
This enforcement aligns with the commitment of CBN Governor, Olayemi Cardoso, who had, during a bankers’ dinner in November 2024, stressed the importance of compliance with cash distribution guidelines.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso stated.
The CBN reiterated its commitment to addressing cash shortages, warning that any bank found guilty of violating cash distribution policies would face immediate and severe sanctions.
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