Newscenter Media News As Nigerians continue to grapple with cash scarcity at banks’ Automated Teller Machines (ATMs) ahead of the Yuletide season, the Central Bank of Nigeria (CBN) has threatened to impose severe penalties on erring banks.
Olayemi Cardoso, governor of CBN, made this known on Friday at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN).
On November 15, 2024, Ripples Nigeria released a special report titled “Empty banks’ ATMs, PoS prevalence, 2 other unusual financial sector practices found only in Nigeria”
In the report, Ripples Nigeria detailed how ahead of the yuletide season, customers of Nigerian banks are currently experiencing cash scarcity in the banking halls and are forced to patronise roadside Point of Sales (PoS) operators that now dot every nook and cranny of the country.
The report also highlighted how Nigerians are bombarded with old, worn-out naira notes while currency hawkers are making a kill selling the new notes to Nigerians at a premium.
Hours after the report aired, the apex bank in a circular signed by Solaja Olayemi, acting director, currency operations department disclosed that it commenced spot checks to ensure efficient and responsible cash disbursement to the public and prevent the disbursement of mint banknotes to persons hawking naira notes.
“Please refer to the subsisting circular on mystery shopping exercise and periodic spot checks on cash distribution/disbursement activities of Deposit Money Banks (DMBs),” the circular reads.
However, despite the apex bank’s warning, the menace has continued unabated.
In the latest warning to Nigerian banks on Friday, Cardoso said non-compliance will lead to severe penalties.
READ ALSO: Naira depreciates, trades N1,672/$ at official window
“We also recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians,” the CBN governor said.
“To address this, we are conducting spot checks across deposit money banks, and we will impose penalties on underperforming institutions.
“Effective December 1, 2024, customers are encouraged to report any difficulties with withdrawing cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.
“Guidelines will be distributed widely to raise public awareness. We will also urge full regulatory compliance by all stakeholders, including mobile money operators and POS agents, to promote digital transaction channels and improve service delivery.
“I repeat, financial institutions found engaging in malpractices or sabotage will face severe penalties.
“The CBN will continue to maintain a robust cash offering to meet the country’s needs, particularly during high-demand periods such as the festive season and year-end.”
Speaking on foreign exchange (FX), Cardoso said Nigeria missed out on a potential N6.2 trillion due to its less flexible FX regime.
“These funds could have significantly contributed to critical investments in education, healthcare, and infrastructure development,” Cardoso said.
The CBN governor said the apex bank is focused on rebuilding Nigeria’s economic resilience through targeted reforms, including prioritising domestic refining capacity, promoting non-oil exports, and advancing technological innovations in the financial sector.
By: Babajide Okeowo
The post As empty ATMs cases persist, CBN vows severe penalty for banks engaging in sabotage appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.