The Central Bank of Nigeria (CBN) has threatened to impose fines on banks that fail to address the ongoing cash scarcity at Automated Teller Machines (ATMs). This announcement was made by the CBN Governor, Olayemi Cardoso, at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria.
Cardoso stated that the CBN recognizes the challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians. To address this, the CBN will conduct spot checks across deposit money banks and impose penalties on underperforming institutions.
The CBN Governor emphasized that financial institutions found engaging in malpractices or sabotage will face severe penalties. He also urged full regulatory compliance by all stakeholders, including mobile money operators and POS agents, to promote digital transaction channels and improve service delivery.
Effective December 1, 2024, customers are encouraged to report any difficulties with withdrawing cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states. Guidelines will be distributed widely to raise public awareness.
The CBN’s threat comes amid recent reports of cash shortages at banks, both at ATMs and over the counter. This has caused inconvenience to many Nigerians, particularly during the festive season.
Cardoso assured that the CBN will continue to maintain a robust cash offering to meet the country’s needs, particularly during high-demand periods. He also commended the efforts of banks that have been working to address the cash scarcity.
The CBN’s move is aimed at ensuring that banks comply with regulatory requirements and provide adequate cash services to their customers. It is expected that this will help to alleviate the cash scarcity and reduce the inconvenience caused to Nigerians.
In conclusion, the CBN’s threat to impose fines on banks over cash scarcity at ATMs is a welcome move. It is expected that this will help to ensure that banks provide adequate cash services to their customers and comply with regulatory requirements.
