The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions, threatening penalties for non-compliance amid growing complaints of cash shortages at Automated Teller Machines (ATMs) and over-the-counter bank services.

Speaking on Friday during the annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, the CBN Governor, Dr. Olayemi Cardoso, emphasized the institution’s commitment to addressing the issue and safeguarding the interests of everyday Nigerians.

“We recognize the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians,” Cardoso stated. He announced that spot checks are being conducted across Deposit Money Banks (DMBs) and warned of strict penalties for underperforming institutions.

New Measures to Combat Cash Scarcity

Effective December 1, 2024, the CBN is encouraging customers to report difficulties accessing cash at bank branches or ATMs. The apex bank will provide designated phone numbers and email addresses for each state to ensure prompt responses. Additionally, public awareness campaigns and new guidelines will be distributed nationwide.

“Financial institutions found engaging in malpractices or sabotaging cash availability will face stringent penalties,” Cardoso warned, emphasizing the need for full regulatory compliance by all stakeholders, including mobile money operators and Point of Sale (POS) agents.

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As the festive season approaches, Cardoso assured Nigerians that the CBN would maintain a robust supply of cash to meet increased demand.

Development Programs Yield Positive Results

The CBN Governor also highlighted the progress made in recovering funds from previous intervention programs. Nearly ₦1 trillion has been repaid under development finance initiatives, which were aimed at sectors such as agriculture, aviation, and power.

“As of October 2024, nearly ₦1 trillion has been recovered, thanks to enhanced monitoring and enforcement,” Cardoso revealed. He reiterated the bank’s focus on ensuring effective utilization and recovery of outstanding loans within established guidelines.

While emphasizing a shift back to orthodox monetary policy, Cardoso noted the CBN’s commitment to creating a more resilient economy through increased diaspora remittances and foreign investment. He projected a monthly inflow of $1 million in diaspora remittances in the near future, highlighting the success of previous efforts to double these inflows.

High-Profile Recognition and Attendance

At the event, the Chartered Institute of Bankers of Nigeria conferred fellowships on Dr. Cardoso and the Governor of Lagos State, Babajide Sanwo-Olu, in recognition of their contributions to the financial sector.

The dinner also hosted dignitaries such as the Minister of Budget and Economic Planning, Atiku Bagudu, and Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions.