The Central Bank of Nigeria is set to penalize commercial banks that do not dispense cash to customers at their ATMs and branches due to an ongoing cash shortage in the country.
The CBN governor announced at a bankers’ dinner in Lagos that spot checks are being conducted at deposit money banks, and penalties will be imposed on non-compliant institutions starting December 1, 2024.
Customers are encouraged to report any cash withdrawal difficulties directly to the CBN, with guidelines to be widely distributed to increase public awareness.
The governor stressed the importance of regulatory compliance by all stakeholders to enhance digital transaction channels and service delivery, warning of strict penalties for any financial institutions found engaging in malpractices.
Nigeria has been experiencing a cash shortage since 2023, exacerbated by a failed currency redesign project and a CBN policy limiting over-the-counter withdrawals. This has led to increased reliance on POS agents for cash transactions, prompting calls for better regulation in the industry.
Despite efforts to promote a cashless economy, the CBN ensures it will maintain sufficient cash reserves to meet demand, especially during peak periods such as holidays.