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The Central Bank of Nigeria (CBN) has announced its intention to sanction banks that fail to dispense cash through their Automated Teller Machines (ATMs) as part of a broader initiative to ensure adequate cash circulation within the economy. This announcement was made by CBN Governor Yemi Cardoso during a press briefing following the 297th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
Governor Cardoso emphasized the obligation of all deposit money banks to maintain a consistent supply of cash for customer withdrawals. To enforce compliance, the CBN has introduced a monitoring system that will track adherence to this directive, and banks that fall short will face strict penalties.
“We have established a monitoring and spot-checking system, allowing us to visit banks to verify compliance with our expectations. Those that do not meet these requirements will be sanctioned,” Cardoso stated. He also highlighted the shared responsibility among stakeholders to ensure that cash reaches those who need it most.
In a bid to further address cash shortages, Cardoso revealed that the CBN plans to inject an additional N1.4 trillion into circulation over the next three months. This measure aims to enhance cash availability at bank branches and ATMs, responding to the ongoing challenges faced by many customers regarding cash insufficiency.
“An additional N1.4 trillion will likely be released over the next three months to support cash flow within the system. We are committed to ensuring sufficient cash is available; there is no justification for banks not having adequate cash,” Cardoso explained.
The CBN governor reiterated the importance of effective cash deployment by banks, stressing the necessity for ATMs to dispense cash efficiently. “We are collaborating closely with all deposit money banks to ensure they provide adequate cash through their ATMs. Customers should never face difficulties withdrawing cash,” he remarked.
The CBN’s stringent measures and planned cash injection are part of a comprehensive strategy to stabilize the nation’s cash flow and ensure easy access to currency throughout the banking system.
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