The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine commercial banks for failing to ensure the availability of cash through their automated teller machines (ATMs) during the yuletide season. The fines, part of the CBN’s efforts to maintain seamless cash flow, were announced following spot checks conducted on the banks’ operations.
Zero Tolerance for Cash Flow Disruptions
The fines, set at N150 million per bank, were levied for non-compliance with the CBN’s cash distribution guidelines. The affected banks include Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank. These penalties highlight the apex bank’s commitment to addressing cash shortages and reinforcing trust in the financial system.
Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, stated that the penalties serve as a strong message to financial institutions. “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. The CBN will not hesitate to impose further sanctions on institutions violating its cash circulation guidelines,” she said.
Enforcement Measures and Ongoing Monitoring
In addition to the fines, the CBN announced that the penalties would be directly debited from the accounts of the affected banks held with the apex bank. The institution further emphasized its continued monitoring of cash availability, targeting both bank branches and Point-of-Sale (POS) operators. The CBN is also collaborating with security agencies to combat illegal cash sales and enforce operational guidelines, including the N1.2 million daily withdrawal limit for POS operators.
Governor Olayemi Cardoso reiterated this stance during his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024. He warned financial institutions to adhere strictly to cash distribution policies, noting that any violations would attract severe penalties. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Governor Cardoso stated.
Validity of Old Naira Notes
In a related development, the CBN has reaffirmed the validity of old N1,000, N500, and N200 notes. The apex bank clarified that these denominations would remain legal tender indefinitely, following a Supreme Court ruling from November 2023.
In a statement signed by Mrs. Hakama Sidi Ali, the CBN urged Nigerians to disregard rumors that the old notes would cease to be valid after December 31, 2024. “All versions of the Naira, including the old and redesigned N1,000, N500, and N200 denominations, as well as commemorative and previous N100 designs, remain valid and continue to be legal tender without any deadline,” the statement read.
Public Assurance
The CBN encouraged Nigerians to accept and use all Naira notes, both old and redesigned, for daily transactions. Citizens were also reminded to handle banknotes with care to ensure their longevity.
The apex bank’s dual actions of enforcing cash availability and addressing misinformation reflect its commitment to maintaining stability and trust within Nigeria’s financial system. These measures are expected to bolster public confidence in the banking sector while ensuring that cash remains accessible during periods of high demand.
