The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine banks for failing to ensure the availability of Naira notes through automated teller machines (ATMs) during the yuletide season.
The apex bank disclosed that each of the affected banks was fined N150 million for non-compliance with its cash distribution guidelines. The sanctions followed spot checks on the banks’ branches to assess cash flow adherence.
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“The CBN has zero tolerance for cash flow disruptions,” stated Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN. She emphasized that ensuring seamless cash availability is crucial to maintaining public trust and economic stability.
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 will be debited directly from the banks’ accounts with the CBN.
Mrs. Ali warned that the apex bank would not hesitate to impose additional sanctions on institutions found violating cash circulation guidelines. “The CBN will continue to monitor and address cash hoarding and rationing at bank branches and by Point-of-Sale (POS) operators,” she said.
In November 2024, during the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN), CBN Governor Olayemi Cardoso underscored the bank’s commitment to enforcing cash distribution policies. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” he noted.
The CBN also reiterated the validity of the old N1000, N500, and N200 denominations, urging Nigerians to disregard rumors suggesting their withdrawal as legal tender by December 31, 2024.
“The subsisting Supreme Court ruling of November 29, 2023, permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations indefinitely,” Mrs. Ali clarified in a statement.
The bank called on Nigerians to accept and handle all Naira banknotes with care, emphasizing that all denominations remain legal tender for daily transactions.
