The Central Bank of Nigeria (CBN) has issued a stern warning that it will enforce strict penalties on banks that fail to remedy the persistent cash shortage at automated teller machines (ATMs).
Olayemi Cardoso, the governor of the CBN, delivered this caution during the annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN) on Friday.
The cash shortage has captured public concern, prompting some Nigerians to turn to X on November 13 to voice their dissatisfaction regarding empty ATMs and dependency on point-of-sale (POS) operators. Just two days later, the CBN mandated banks to prioritize cash availability at ATMs and indicated that fines would be levied on those facilitating currency speculation.
“We also recognize the persistent difficulties with cash access at ATMs, which disproportionately impact regular Nigerians,” Cardoso stated. “To tackle this issue, we are performing random inspections across deposit money banks, and we will impose penalties on those institutions that underperform.”
The CBN governor unveiled plans to empower customers, starting December 1, 2024.
“Customers are encouraged to report any challenges with cash withdrawals from bank branches or ATMs directly to the CBN through specified phone numbers and email addresses for their respective states. We will disseminate guidelines widely to enhance public awareness. Additionally, we will advocate for complete regulatory adherence by all parties involved, including mobile money operators and POS agents, to foster digital transaction channels and enhance service delivery.”
Cardoso emphasized that financial institutions involved in unethical practices or obstruction would incur severe repercussions. “The CBN will persist in maintaining a robust cash supply to fulfill the nation’s requirements, especially during peak demand periods such as the festive season and year-end.”
Regarding foreign exchange (FX) issues, Cardoso pointed out Nigeria’s missed opportunity for N6.2 trillion in potential revenue due to a less adaptable FX policy. “These resources could have made a significant impact on vital investments in education, healthcare, and infrastructure development,” he remarked.
The governor concluded that the central bank is dedicated to rebuilding Nigeria’s economic resilience through strategic reforms. These initiatives include boosting domestic refining capacity, encouraging non-oil exports, and advancing technological innovations in the financial sector.