By Chioma Obinagwam
Nigeria’s apex bank, the Central Bank of Nigeria (CBN), has fined nine Deposit Money Banks(DMB) N150 million each for failing to make cash available in their Automated Teller Machines(ATM) during the Christmas and new year period in 2024.
The CBN told Confiance News in a statement on Tuesday.
The Acting Director of Corporate Communications at the CBN, Mrs Hakama Sidi Ali, confirming the development, said: “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.”
The sanctioned 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; totalling N1.35 billion.
Confiance News recalls that Governor Olayemi Cardoso, in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to strictly adhere to cash distribution policies or face severe penalties. He underscored the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs.
He said : “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash.” circulation across the financial system,” Cardoso said.
The apex bank disclosed that it sanctioned the banks following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines and after after repeated warnings.
The fines will be directly debited from the banks’ accounts with the CBN.The CBN, in the statement, emphasised the regulator’s commitment to ensuring seamless cash availability.
”The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand,” the statement disclosed.
The CBN urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.
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