CBN Cracks Down on Banks Hoarding Cash, Threatens Sanctions

By Emmanuel Kwada

The Central Bank of Nigeria (CBN) has issued a stern warning to banks and other financial institutions engaging in malpractices or refusing to make cash available to Nigerians. CBN Governor, Olayemi Cardoso, made this declaration at the Chartered Institute of Bankers’ of Nigeria (CIBN) dinner in Lagos.

Effective December 1, 2024, any bank found wanting will face severe sanctions. Cardoso emphasized that the CBN will conduct routine checks at ATMs to ensure they are stocked with cash. Banks that fail to supply cash to ATMs will be punished.

Nigerians have expressed frustration as many automated telling machines (ATMs) remain empty

This move comes amidst a nationwide cash scarcity, with many Point of Sale (POS) operators increasing their charges. Nigerians have expressed frustration as many automated telling machines (ATMs) remain empty.

Cardoso reassured Nigerians that the CBN will maintain a robust cash buffer to meet the country’s needs, particularly during high-demand periods like the festive season and year-end. The CBN’s focus is on ensuring seamless cash flow for Nigerians while fostering trust and stability in the financial system.

The CBN’s focus is on ensuring seamless cash flow for Nigerians while fostering trust and stability in the financial system

Customers are urged to report any difficulties withdrawing cash from bank branches or ATMs directly to the CBN starting December 1, 2024.