- CBN issued warning to financial institutions over ongoing ATM cash shortages
- Penalties for banks failing to ensure cash availability would start December 1, 2024
- CBN also urged the promotion of digital transactions to ease pressure on cash access
The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions over the ongoing cash scarcity at Automated Teller Machines (ATMs) across the country.
CBN governor, Olayemi Cardoso, announced that penalties would be imposed on erring banks and other financial players during his address at the annual Bankers' Dinner organised by the Chartered Institute of Bankers of Nigeria on Friday, November 29.
Recent reports have highlighted a significant shortage of cash, both at ATMs and over-the-counter services, leading to inconvenience for ordinary Nigerians.
The CBN has acknowledged the challenges and stated that it is taking measures to address the issue.
“We also recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians,” Cardoso remarked, underscoring the importance of resolving the situation promptly.
In response, the CBN has launched spot checks across deposit money banks to monitor their performance and ensure adequate cash availability. Cardoso stressed that any institutions found lacking in service delivery would face penalties.
“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,” Cardoso added.
This move aims to ensure that customers have a direct channel to report issues, holding banks accountable for any failure to provide sufficient cash services.
In addition to addressing the cash shortages, the CBN has called for greater compliance with regulations governing mobile money operators and POS (Point of Sale) agents.
The central bank is encouraging financial institutions to promote digital transaction channels, which can help alleviate some of the pressure on cash-based transactions, especially during high-demand periods such as the festive season and year-end.
“The CBN will continue to maintain a robust cash offering to meet the country’s needs,” Cardoso assured, stressing the importance of timely and effective service delivery.
Cardoso says naira floating was a tough but necessary step to close official, parallel FX rates
Meanwhile, TheRadar reported that the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said the floating of the naira was necessary to close the gap between the foreign exchange (forex) rates at the official and parallel markets.
Cardoso noted that though the decision was tough, it had to be taken to align the forex rate with market realities to halt arbitrage and speculation that undermined market trust.
