This action follows repeated warnings from the CBN for banks to prioritize cash distribution via ATMs, while also implementing effective internal controls for accountability and responsible disbursement.
Abuja, Nigeria – The Central Bank of Nigeria (CBN) has imposed a ₦150 million fine on several Deposit Money Banks (DMBs) for failing to comply with cash distribution guidelines during the festive season.
The sanctions were enforced after spot checks revealed that the affected banks did not dispense Naira notes through their Automated Teller Machines (ATMs), as mandated by the apex bank.
This action follows repeated warnings from the CBN for banks to prioritize cash distribution via ATMs, while also implementing effective internal controls for accountability and responsible disbursement. The penalties are part of the bank’s broader strategy to ensure efficient cash flow, prevent currency abuse, and maintain public trust.
The affected banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc (UBA), and Sterling Bank Plc. Each bank will have the fine deducted directly from its account with the CBN, according to a statement by Hakima Sidi Ali, the Acting Director of Corporate Communications at the CBN.
“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines. Ensuring seamless cash flow is paramount to maintaining public trust and economic stability,” Ali stated.
This move underscores the central bank’s commitment to addressing cash distribution challenges across the country, particularly during critical periods like the yuletide season.
N100,000 Daily Limit On PoS Withdrawals
Similarly, REPORT AFRIQUE reported in December 2024 that the apex bank has introduced a daily limit of N100,000 on Point of Sale (PoS) withdrawals, as part of efforts to alleviate the ongoing naira scarcity. This directive applies to all Nigerian banks and is aimed at promoting a cashless economy.
According to a circular titled “Cash-out limits for agent banking transactions,” the CBN has outlined the following measures:
- Daily PoS Withdrawal Limit: N100,000 per customer
- Weekly Cash Withdrawal Limit: N500,000 per customer
- Daily Cumulative Cash-out Limit for Agents: N1,200,000
These restrictions are intended to address challenges, combat fraud, and establish uniform operational standards across the industry. The apex bank also warned that breaches of these directives will attract penalties, including monetary fines and administrative sanctions.
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