By DAYO ADESULU
The Central Bank of Nigeria (CBN) has imposed fines totalling ₦1.35 billion on nine commercial banks for failing to make Naira notes available through their Automated Teller Machines (ATMs) during the festive season.
Each of the nine banks, including Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc, was fined ₦150 million for non-compliance with the CBN’s cash distribution guidelines.
Enforcement and Compliance
The fines, part of the CBN’s zero-tolerance policy on cash flow disruptions, followed spot checks on the banks’ branches. The penalties will be directly debited from the banks’ accounts with the apex bank.
The Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, emphasized that ensuring seamless cash availability is critical for public trust and economic stability.
“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she stated.
The apex bank has reiterated its commitment to monitoring and investigating cash hoarding and rationing by both banks and Point-of-Sale (POS) operators. It is also working closely with security agencies to address operational violations, including ensuring POS operators adhere to the daily cumulative withdrawal limit of ₦1.2 million.
Old Naira Notes Remain Legal Tender
Meanwhile, the CBN has addressed rumors regarding the validity of the old ₦1000, ₦500, and ₦200 denominations, urging the public to disregard claims that they would cease to be legal tender from December 31, 2024.
In a statement signed by Mrs. Hakama Sidi Ali, the apex bank affirmed that the Supreme Court ruling of November 29, 2023, allows the concurrent circulation of both old and new designs of the Naira indefinitely.
“For the avoidance of doubt, all versions of the Naira, including the old and redesigned ₦1000, ₦500, and ₦200 denominations, as well as the commemorative and previous designs of the ₦100 denomination, remain valid and legal tender without any deadline,” the statement read.
Public Assurance
CBN Governor, Olayemi Cardoso, has reaffirmed the bank’s dedication to maintaining a robust cash buffer to meet Nigerians’ needs. Speaking at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, Cardoso warned banks to strictly adhere to cash distribution policies or face severe penalties.
The CBN urged financial institutions and the general public to comply with guidelines and responsibly handle all banknotes to ensure their longevity.
