In a decisive move against cash distribution failures, the Central Bank of Nigeria (CBN) has penalised nine Deposit Money Banks (DMBs) for failing to ensure the availability of naira notes via automated teller machines (ATMs) during the festive season.

Each bank was fined ₦150 million for breaching the CBN’s cash distribution guidelines. The penalties were imposed following spot checks on the banks’ branches.

This enforcement action comes after repeated warnings from the apex bank, urging financial institutions to ensure smooth cash availability, particularly during periods of heightened demand.

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.

The fines will be directly debited from the banks’ accounts with the central bank, according to the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali.

“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. The CBN will not hesitate to impose further sanctions on any institution found in breach of its cash circulation guidelines,” she said.

The CBN also confirmed that investigations into cash hoarding and rationing at bank branches and by Point-of-Sale (POS) operators are ongoing. Security agencies are working in conjunction with the CBN to tackle illegal cash sales and ensure compliance with POS operators’ cumulative daily withdrawal limit of ₦1.2 million.

Speaking at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, Governor Olayemi Cardoso reiterated the importance of adherence to cash distribution policies. He warned that violations would attract severe penalties and emphasised the CBN’s commitment to maintaining a robust cash buffer to meet the needs of Nigerians.

“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso stated.

The CBN has urged all financial institutions to comply with its guidelines, warning that any further violations would result in swift and decisive sanctions.