CBN Sanctions Nine Banks For Hoarding Cash,Debits Each N150m

By Godson Ikoro

The Central Bank of Nigeria (CBN) has wielded the big stick against nine banks; fining them N150miliion each for hoarding cash by refusing to load Automated Teller Machines (ATM) contrary to the regulators cash distribution directives during the yuletide.
The erring banks who had been collectively fined a total of N1.35 billions are First Bank Plc, Fidelity Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa, Union Bank, Sterling Bank and Keystone bank.
A statement from the CBN said the fines has already been debited to the accounts of respective banks, emphasizing that the commitment to guaranteeing seamless cash flow, particularly during periods of high demand would be sustained.

The statement which was signed by the Acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, said:”ensuring seamless cash flow is paramount to maintaining public trust and economic stability.
Consequently, the CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.
According to her the CBN is already investigating the cash hoarding and rationing by bank branches and Point of Sale(PoS ) operators, adding that it is collaborating with security agencies to halt illegal cash sales and enforcing the PoS operators daily cumulative withdrawal limit of N1. 2 million .
This sanctions stemmed from the CBN Governor, Olayemi Cardoso, warning in his November 2024 address to bankers at the Annual Bankers Dinner of the Chartered Institute of Bankers of Nigera (CIBN).
Cardoso had warned banks to adhere strictly to cash distribution policies or face severe penalties.
He stressed CBN commitment to maintaining a robust cash buffer to meet the Nigerians’ needs .