CBN Fines Banks ₦150m Each for Failing to Stock ATMs During Yuletide

In a decisive move to ensure uninterrupted cash flow, the Central Bank of Nigeria (CBN) has fined nine Deposit Money Banks (DMBs) ₦150 million each for failing to make Naira notes available through automated teller machines (ATMs) during the yuletide season.

The penalties, imposed following spot checks on the banks’ branches, aim to enforce compliance with the CBN’s cash distribution guidelines. 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 CBN had repeatedly warned financial institutions to ensure seamless cash availability, particularly during periods of high demand. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, confirmed the development, stating, “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 violating its cash circulation guidelines.”

The sanctions, to be debited directly from the banks’ accounts with the apex bank, reflect the CBN’s commitment to strict oversight. In addition, the CBN will continue monitoring cash hoarding and rationing, including Point-of-Sale (POS) operators’ adherence to the daily cumulative withdrawal limit of ₦1.2 million.

CBN Governor Olayemi Cardoso had earlier warned banks during the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024 to adhere strictly to cash distribution policies or face severe consequences. He emphasized the CBN’s dedication to maintaining a robust cash buffer to meet Nigerians’ needs, stating, “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system.”

The CBN reiterated its stance, urging financial institutions to comply with its guidelines and warning that further violations would attract swift and decisive sanctions.