The Central Bank of Nigeria (CBN) levied a total of N1.35 billion in penalties against nine deposit money banks (DMBs) for failing to maintain adequate cash availability at their automated teller machines (ATMs) during the holiday period.

The banks affected include Fidelity Bank, First Bank, Keystone Bank, Union Bank, and Globus Bank, along with Providus Bank, Zenith Bank, United Bank for Africa (UBA), and Sterling Bank.

In a statement released on Tuesday, Hakama Sidi Ali, the acting director of corporate communications at the CBN, indicated that each bank would incur a fine of N150 million due to findings from spot checks that indicated a lack of adherence to the central bank’s cash distribution protocols.

Sidi Ali noted that the fines would be deducted directly from the banks' accounts held with the CBN.

The statement emphasized that the Central Bank of Nigeria is sending a strong message of zero tolerance towards disruptions in cash flow, particularly regarding the availability of Naira notes at ATMs during the festive period.

“Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches.

“The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.”

The CBN emphasized that it will take decisive action against any institution that breaches its cash circulation regulations by imposing additional sanctions.

The CBN has committed to enhancing its oversight of cash hoarding and rationing practices at bank branches and point-of-sale terminals.

The regulatory body stated it would work in conjunction with security agencies to combat illegal cash transactions and ensure adherence to the daily withdrawal limit of N1.2 million for POS operators.

On November 29, Olayemi Cardoso, the governor of the CBN, encouraged bank customers to report any difficulties with withdrawals through designated contact numbers.

Before issuing this directive, the financial regulator had instructed banks to prioritize cash distribution through ATMs or face potential penalties.