The Central Bank of Nigeria (CBN) has sanctioned nine commercial banks with fines totaling N1.35 billion for failing to ensure availability of cash through automated teller machines (ATMs) during the Christmas holiday period and New Year.
According to a CBN statement, nine banks were fined N150 million each following unannounced audits which revealed non-compliance with the central bank’s liquidity distribution directives, causing a shortage during the holidays.
Les banques concernées sont 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 et Sterling Bank Plc.
The statement said the fines will be directly deducted from the banks’ accounts with the CBN.
“In a clear message of zero tolerance for disruptions in the flow of cash, the Central Bank of Nigeria has sanctioned commercial banks for failing to make naira bank notes available through ATMs, for the holiday season,” the statement said.
“Each bank was fined N150 million for non-compliance with CBN liquidity distribution guidelines following unannounced checks at their branches.
This enforcement action follows the CBN’s repeated warnings to financial institutions to ensure smooth availability of liquidity, particularly during periods of high demand,” it added.
The statement noted that the CBN will not hesitate to impose further sanctions on any institution that contravenes its liquidity circulation guidelines.
This enforcement action highlights the CBN’s zero-tolerance approach to disruptions in liquidity flow, particularly during periods of high demand. The central bank had previously warned banks to comply with liquidity distribution policies.
The CBN has vowed to intensify monitoring of cash hoarding and rationing at bank branches and point-of-sale terminals.
GIK/lb/Sf/ac/APA
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