The Central Bank of Nigeria (CBN) has issued a stern warning to all financial institutions across the country, announcing that they will face severe penalties if they fail to address the ongoing cash scarcity that has been plaguing Automated Teller Machines (ATMs) and other banking services.
This announcement comes amid widespread public frustration over the unavailability of cash at ATMs and bank counters, which has significantly disrupted the daily activities of Nigerians.
The warning was delivered by CBN Governor, Olayemi Cardoso, during the annual Bankers’ Dinner event hosted by the Chartered Institute of Bankers of Nigeria. The dinner, which serves as a gathering for key players in the banking sector, provided the platform for Cardoso to address the issues of cash availability that have become a pressing concern for the public. His remarks come in the wake of persistent reports of cash shortages affecting both ATMs and bank branches, leading to long queues, customer complaints, and, in some cases, an inability for Nigerians to access their own funds.
In his address, Cardoso acknowledged the significant impact that these shortages are having on the daily lives of Nigerians, emphasizing the urgency of the matter. “We are aware of the persistent challenges with cash availability at ATMs, which heavily impact everyday Nigerians,” he said. “To tackle this, we are conducting spot checks on deposit money banks and will penalize institutions that fail to meet expectations.” The CBN Governor made it clear that financial institutions must be held accountable for ensuring that cash is readily available to customers, particularly at ATMs and during business hours at bank branches.
The CBN’s plan to address these cash scarcity issues is multifaceted. In addition to conducting spot checks on financial institutions, Cardoso also announced a new initiative aimed at empowering the public to report any difficulties they encounter when trying to withdraw cash. Starting from December 1, 2024, customers who experience issues withdrawing money from ATMs or bank branches will be able to directly report the problem to the CBN through dedicated phone lines and email addresses that will be provided for each state. Cardoso explained, “Comprehensive guidelines will be made available to ensure public awareness,” and he encouraged Nigerians to take advantage of these channels to make their voices heard.
The CBN’s emphasis on transparency and public accountability was further reinforced with Cardoso’s statement regarding the enforcement of digital transaction systems. He noted that the CBN is committed to improving customer service across the board, including ensuring that mobile money operators and Point of Sale (POS) agents are fully compliant with the guidelines aimed at promoting smoother digital transactions. These measures are particularly important as the country heads into the festive season, which traditionally sees a surge in banking transactions, both in person and online.
“Financial institutions found guilty of malpractices or sabotage of the cash flow system will face strict sanctions,” Cardoso warned, reiterating that the CBN would not tolerate any form of obstruction to the flow of cash or failure to meet operational standards. This message is particularly significant in light of the role that financial institutions play in facilitating the country’s economy, and the CBN is determined to ensure that the public has reliable access to banking services, particularly in high-demand periods like the end-of-year holidays.
Furthermore, the CBN reaffirmed its commitment to ensuring adequate cash flow across the country, especially during times of peak demand, such as the festive season and the year-end celebrations. “We understand that these are critical times for the Nigerian people, and we are taking every step to ensure that there is no shortage of cash in circulation,” Cardoso added. The central bank’s efforts are aimed at restoring public confidence in the banking system and ensuring that financial institutions play their part in maintaining the stability and efficiency of Nigeria’s financial ecosystem.
The warning to banks and financial institutions is part of the CBN’s broader strategy to ensure that the Nigerian banking sector remains responsive to the needs of the public and that disruptions, such as cash shortages, are minimized. By setting clear expectations and taking decisive action, the CBN hopes to prevent further inconvenience to the public and improve the overall banking experience for Nigerians, particularly as the country enters the final stretch of 2024. With the measures being put in place, it is hoped that the cash availability issues at ATMs and bank branches will be resolved, bringing relief to millions of Nigerians who rely on these services daily.
