The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions over the persistent cash shortages at Automated Teller Machines (ATMs), vowing to impose heavy penalties on those failing to comply with regulatory standards.
CBN Governor Olayemi Cardoso announced the measures on Friday during the annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria.
Reports of cash scarcity at both ATMs and bank counters have sparked frustration among Nigerians, with many struggling to access basic funds. Addressing these concerns, Cardoso acknowledged the disproportionate burden the situation places on ordinary citizens and emphasized the CBN’s commitment to resolving the issue.
To tackle the problem, Cardoso revealed that the CBN has begun conducting unannounced inspections at deposit money banks to assess their compliance with cash distribution mandates.
Institutions found underperforming or engaging in practices that exacerbate cash shortages will face strict sanctions.
Effective December 1, 2024, customers are encouraged to report any difficulties with cash withdrawals at bank branches or ATMs. The CBN has established designated phone numbers and email addresses for this purpose, which will be shared publicly to ensure accessibility across all states.
The governor also stressed the importance of digital transaction channels as a solution to cash shortages, urging mobile money operators and POS agents to adhere strictly to regulatory guidelines.
He reaffirmed the CBN’s dedication to maintaining adequate cash flow nationwide, especially during peak periods like the festive season and year-end celebrations.
Cardoso warned that any financial institution found sabotaging efforts to improve cash availability or engaging in malpractice would face severe consequences. The CBN’s proactive measures aim to alleviate the ongoing cash crisis and restore public confidence in the financial system, ensuring that Nigerians can access the funds they need without undue hardship.
