CBN Fines Fidelity, First Bank, Seven Others N1.35bn for ATM Cash Scarcity
The Central Bank of Nigeria (CBN) has sanctioned nine Deposit Money Banks (DMBs) a total of N1.35 billion for failing to ensure cash availability via Automated Teller Machines (ATMs) during the festive season in December 2024. Each of the affected banks was fined N150 million for breaching the apex bank’s cash distribution guidelines.
The penalized 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, according to the CBN, will be directly debited from the banks’ accounts.
In a statement released on Tuesday, the acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi, reiterated the regulator’s commitment to seamless cash distribution.
She noted, “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines during the yuletide season.”
The action follows spot checks conducted by the CBN on bank branches nationwide, which revealed widespread non-compliance.
Mrs. Sidi emphasized, “Each bank was fined N150 million 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 cash scarcity during the festive period caused significant disruptions across Nigeria, particularly in Lagos, the country’s commercial hub. Neusroom observed that several ATMs were not dispensing cash, with some banks limiting withdrawals to as little as ₦500 per transaction. The scarcity led to an upsurge in Point of Sale (POS) transaction charges, compounding the financial strain on citizens.
Recall that last September, the CBN announced its intention to penalize banks that failed to comply with ATM cash dispensing regulations. Additionally, in November, the apex bank urged customers to report cash withdrawal challenges via state-specific phone numbers and email addresses starting December 1, 2024.
