The Central Bank of Nigeria (CBN) has announced its plan to sanction banks that fail to ensure their Automated Teller Machines (ATMs) are dispensing cash. This move aims to address the ongoing cash shortages and ensure sufficient currency circulation across the country.
CBN Governor Yemi Cardoso disclosed this during a press briefing following the conclusion of the 297th Monetary Policy Committee (MPC) meeting in Abuja. He emphasized that all banks must maintain adequate cash levels to meet customer demands.
Cardoso stated that the CBN has set up a monitoring system to ensure banks comply with this directive, warning that any bank found non-compliant will face penalties. “We have devised a spot-checking system to ensure that banks are doing what they are supposed to do,” he said. “If they fail to comply, sanctions will follow.”
To further improve cash availability, the CBN plans to inject an additional N1.4 trillion into circulation over the next three months. This initiative is aimed at resolving the cash shortages that customers have been facing, particularly at ATMs and bank branches.
“We are doing everything possible to ensure there is sufficient cash in the system,” Cardoso noted. He stressed the importance of banks working closely with the CBN to guarantee that ATMs are regularly stocked with cash for public withdrawals.
The governor reiterated that no bank should run out of cash, as deposit money banks are responsible for ensuring sufficient funds are available for withdrawals at all times.
Meanwhile, Nigeria’s currency outside the banking system dropped to N3.66 trillion in July 2024, marking a 3.32% decrease from the previous month’s N3.79 trillion. Despite this drop, total currency circulation slightly increased to N4.05 trillion, suggesting the CBN’s measures to stabilize cash flow may be having an effect.
The CBN’s actions are part of ongoing efforts to tighten liquidity and promote digital transactions, while ensuring there is enough physical cash in circulation for those who need it.
