FIDELITY, First Bank, Keystone Bank, and Union Bank Plc have been sanctioned by the Central Bank of Nigeria (CBN) for failing to make naira notes available through automated teller machines (ATMs), during the last Yuletide season.
Others sanctioned for similar violations include: Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank Plc.
The acting director of corporate communications at the CBN, Hakama Sidi Ali, confirmed the development in a statement on Tuesday, January 14, noting that “ensuring seamless cash flow is paramount to maintaining public trust and economic stability.

“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she stated.
She stressed that the apex bank’s investigations and monitoring would continue to scrutinise cash hoarding and rationing, both at bank branches and by point-of-sale (POS) operators.
She also disclosed that the CBN was working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.
According to the spokesperson, each bank was fined ₦150 million for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches.
The enforcement action followed repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand, she noted.
“Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank,” she added.
The CBN, governor, Olayemi Cardoso, in his address at the annual bankers’ dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to strictly adhere to cash distribution policies or face severe penalties.
He underscored the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso.
The CBN further urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.
The ICIR in December 2024 reported that the apex bank had been largely silent over the cash scarcity that hit businesses and households in the 2024 Yuletide season across the country.
The scarcity prompted PoS operators to adjust their charges to almost 100 per cent higher.
Nigerians were left at the mercy of the PoS merchants as commercial banks rationed cash dispensing to consumers.
Most automated teller machines (ATM) dispensing spots in Abuja Federal Capital Territory (FCT) did not dispense, forcing most businesses to rely on PoS merchants for their transactions.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.