Fined banks load ATMs with cash after sanction

Most of the Deposit Money Banks (DMBs) sanctioned by the Central Bank of Nigeria (CBN) have taken immediate steps to load their Automated Teller Machines (ATMs) with cash. On Wednesday, just a day after facing penalties, these banks were seen complying with the directive.

The sanctions, imposed on Tuesday, targeted nine banks for failing to ensure the availability of naira notes via ATMs during the yuletide season. The CBN had carried out spot checks across branches to enforce compliance with its cash distribution guidelines, penalising each bank with a fine of N150 million.

A visit to several bank branches in Lagos revealed that three out of four banks’ ATMs were dispensing cash. ATMs at United Bank for Africa (UBA), Zenith Bank, and Fidelity Bank were operational, while those at First Bank of Nigeria were not dispensing cash. However, customer turnout at the ATMs was sparse, with no customers observed at the ATMs of Zenith, Fidelity, and First Bank. At the UBA branch, some customers were seen withdrawing cash. A security staff member at a Fidelity Bank branch explained that withdrawals were limited to N20,000 for Fidelity Bank debit cardholders and N10,000 for holders of other banks’ ATM cards.

Read also: CBN fines 9 banks N1.35bn for not dispensing cash via ATMs

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 enforcement action reveals the CBN’s determination to ensure seamless cash availability, especially during peak demand periods.

In a statement delivered at the annual bankers’ dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, Olayemi Cardoso, CBN governor stressed the need for strict adherence to cash distribution policies. He stated, “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system.” Cardoso reiterated the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs.

Hakama Sidi Ali, CBN’s acting director of corporate communications, signed a statement, saying, “The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”

The apex bank’s investigations and monitoring efforts will continue to scrutinise cash hoarding and rationing practices at bank branches and by Point-of-Sale (POS) operators. Additionally, the CBN is collaborating with security agencies to address illegal cash sales and ensure compliance with operational regulations, including enforcing the POS operators’ daily cumulative withdrawal limit of N1.2 million.