Nigeria’s Central Financial institution will penalise industrial banks that fail to offer money to prospects at their automated teller machines (ATMs) and branches, because the nation faces a protracted money crunch.
“We’re conducting spot checks throughout deposit cash banks, DMBs, and can impose penalties on establishments efficient December 1, 2024,” CBN governor Olayemi Cardoso mentioned on the annual bankers’ dinner in Lagos on Friday.
Cardoso urged prospects to report difficulties withdrawing money from financial institution branches, and ATMs on to the CBN via designated channels, including the rules could be distributed broadly to boost public consciousness.
“We additionally urge full regulatory compliance by all stakeholders, together with cell cash operators and brokers to advertise digital transaction channels and enhance service supply,” Cardoso mentioned. “Monetary establishments discovered partaking in malpractices or deliberate sabotage will face stringent penalties.”
Nigerians have confronted a money squeeze since 2023 after a controversial foreign money change. Whereas the failed naira redesign venture led to a boon in digital funds with winners like Opay and Palmpay, it created a money scarcity at ATMs and banking halls. A central financial institution coverage capping weekly over-the-counter withdrawals at ₦500,000 additionally contributed to the money scarcity.
Nonetheless, the money shortage at industrial banks drove companies to POS brokers, who supply money from supermarkets, market individuals, and gasoline stations. The rising reliance on POS brokers has elevated calls to control the company banking enterprise. In Could 2024, the federal government ordered the nation’s 1.9 million POS operators to register with the Company Affairs Fee (CAC).
Whereas the CBN has tried to wean Nigerians off their money dependence to attain a “cashless financial system,” the governor mentioned the regulator will present enough money provide.
“The CBN will proceed to take care of a strong money buffer to satisfy the nation’s wants, notably throughout high-demand intervals such because the festive season and year-end,” Cardoso mentioned. “Our focus is guaranteeing a seamless money movement for Nigerians whereas fostering belief and stability within the monetary system.”