In a decisive move to address the persistent cash scarcity at Automated Teller Machines (ATMs) across Nigeria, the Central Bank of Nigeria (CBN) has announced its intention to sanction financial institutions that fail to maintain adequate cash availability for customers. This directive comes amid widespread reports of cash shortages, which have significantly impacted everyday Nigerians who rely on ATMs for their daily transactions.
CBN Governor, Dr. Olayemi Cardoso, made this announcement during the annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria. He emphasized the CBN’s commitment to ensuring that all deposit money banks uphold the standards required to serve the public effectively. Dr. Cardoso stated, “We recognize the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians.” He further elaborated on the measures the CBN plans to implement to rectify this issue.
To ensure compliance, the CBN will conduct spot checks across various banks. These unannounced inspections aim to assess the cash availability at ATMs and identify institutions that are not meeting the required standards. Banks found to be underperforming in this regard will face penalties. Dr. Cardoso emphasized, “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.” This initiative aims to involve the public in monitoring and reporting non-compliance, thereby promoting transparency and accountability within the banking sector.
In addition to these measures, the CBN has issued guidelines to be widely distributed to raise public awareness. These guidelines will inform customers about the steps they can take if they encounter issues with cash withdrawals. The CBN also plans to urge full regulatory compliance by all stakeholders, including mobile money operators and Point of Sale (POS) agents, to promote digital transaction channels and improve service delivery. Dr. Cardoso reiterated, “Financial institutions found engaging in malpractices or sabotage will face severe penalties.” This stern warning underscores the CBN’s commitment to maintaining the integrity of the financial system and ensuring that customers have reliable access to their funds.
The CBN’s proactive stance is particularly significant as the country approaches the festive season and year-end, periods traditionally associated with increased cash demand. Dr. Cardoso assured the public that the CBN would continue to maintain a robust cash offering to meet the country’s needs during these high-demand periods. He stated, “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.” This assurance aims to alleviate public concerns about potential cash shortages during critical times.
This development follows previous CBN policies aimed at regulating cash withdrawals to promote a cashless economy. In December 2022, the CBN announced a policy limiting weekly cash withdrawals to N100,000 for individuals and N500,000 for corporate organizations. The policy also stipulated that only denominations of N200 and below should be loaded into ATMs, with a maximum daily withdrawal limit of N20,000 per day. These measures were part of the CBN’s broader strategy to encourage digital transactions and reduce the reliance on cash.
However, in response to feedback from stakeholders and the public, the CBN later revised these limits. By December 2022, the weekly cash withdrawal limits were increased to N500,000 for individuals and N5 million for corporate organizations. This adjustment was made to accommodate the needs of various segments of the economy while still promoting the transition to a cashless society.
Despite these efforts, the issue of cash scarcity at ATMs has persisted, prompting the CBN to take more stringent measures. The current directive to sanction banks with inadequate ATM cash availability reflects the CBN’s resolve to ensure that financial institutions fulfill their obligations to customers. By holding banks accountable, the CBN aims to restore public confidence in the banking system and ensure that Nigerians have consistent access to cash when needed.
The CBN’s actions also highlight the importance of collaboration between regulatory authorities, financial institutions, and the public in addressing challenges within the financial system. By encouraging customers to report issues and by conducting regular oversight, the CBN seeks to create a more responsive and efficient banking environment. This collaborative approach is essential for the successful implementation of policies aimed at enhancing financial inclusion and promoting economic stability.
As the CBN continues to implement these measures, it remains to be seen how banks will respond and how effective these actions will be in alleviating the cash scarcity at ATMs. Nevertheless, the CBN’s commitment to ensuring cash availability and its willingness to enforce compliance signal a positive step towards addressing the challenges faced by bank customers across Nigeria.
