The Central Bank of Nigeria (CBN) has warned banks to prioritize cash disbursement through ATMs, threatening severe penalties for non-compliance. Governor Olayemi Cardoso emphasized that banks engaged in sabotage or malpractices will face strict penalties. The CBN also highlighted reforms to improve Nigeria’s economic resilience and FX flexibility.
The Central Bank of Nigeria (CBN) has issued a strong warning to banks over the persistent cash shortages at automated teller machines (ATMs). Governor Olayemi Cardoso, speaking at the Chartered Institute of Bankers of Nigeria (CIBN) annual dinner on Friday, stated that banks failing to provide adequate cash supply will face penalties. This follows numerous complaints from Nigerians who have struggled to withdraw cash from ATMs since mid-November, often relying on point-of-sale (POS) operators. In response, the CBN had earlier instructed banks to prioritize ATM cash disbursements.
Cardoso confirmed that spot checks are being conducted on banks, with penalties for those found lacking in performance. The CBN also warned against the illegal disbursement of naira notes to hawkers, promising fines for violators. From December 1, Nigerians will be able to report any difficulties with withdrawing cash directly to the CBN via phone or email.
Highlighting the importance of financial sector reforms, Cardoso also spoke on the broader economic challenges, including Nigeria’s missed opportunity to access N6.2 trillion in foreign exchange due to rigid foreign exchange policies. The CBN governor reaffirmed the central bank's commitment to supporting Nigeria's economy through domestic refining, non-oil exports, and technological innovations in the financial sector.
The CBN’s increased vigilance, Cardoso stated, is aimed at ensuring that financial institutions remain compliant with regulatory standards while improving the overall service delivery to Nigerians.
