The Central Bank of Nigeria (CBN) has penalized at least nine Deposit Money Banks for their inability to provide sufficient cash at automated teller machines (ATMs) during the holiday season. Each bank has been fined N150 million, resulting in a total penalty of N1.35 billion.
The banks were found to be in violation of the CBN’s cash distribution guidelines following surprise inspections that revealed a lack of compliance.
In a statement issued on Tuesday, Mrs. Hakama Sidi Ali, the acting Director of Corporate Communications at the CBN, emphasized the bank’s commitment to maintaining cash flow, stating, “The Central Bank of Nigeria has taken decisive action against Deposit Money Banks for their failure to ensure the availability of naira notes at ATMs during the festive period.”
Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high 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.”
