The Central Bank of Nigeria (CBN) has pledged to take strong action against banks found to be engaging in sabotage regarding the ongoing cash shortage issue, particularly focusing on the increasing reports of empty ATMs across the country......Read The Full Article>>.....Read The Full Article>>
The announcement follows widespread frustrations among Nigerians who continue to face difficulties withdrawing cash, especially during peak periods.
During a recent statement, CBN Governor Olayemi Cardoso expressed the apex bank’s commitment to addressing the escalating situation, which has affected the livelihoods of ordinary Nigerians.
Cardoso eemphasised hat the CBN will be conducting spot checks on Deposit Money Banks (DMBs) to ensure that they are fulfilling their obligations and meeting the public’s needs.
The CBN Governor stated that any bank found deliberately withholding cash or failing to adequately service ATMs would face severe penalties.
“The CBN is fully aware of the continuing challenges faced by Nigerians when it comes to accessing cash through ATMs. We are committed to resolving this issue by penalizing institutions that fail to meet their responsibilities,” Cardoso said.
“Banks found to be engaging in sabotage or malpractices will face strict penalties.”
The move follows mounting concerns that some banks might be contributing to the crisis by not replenishing their ATMs in a timely manner or by intentionally limiting cash access.
Experts have raised concerns that these actions could be an attempt by certain institutions to manipulate cash availability for business advantage.
Financial analysts believe that the CBN’s decision to impose penalties could be a step in the right direction, but they warn that effective enforcement will be critical to ensuring accountability.
“There needs to be transparency in the process, and banks must be held accountable for failing to meet their customers’ needs,” said Dr. Ifeanyi Okafor, a financial analyst.
“The CBN’s commitment to spot checks is important, but the true test will be whether it can enforce these penalties effectively.”
The ongoing cash shortage is not limited to ATMs; many customers have also faced difficulties withdrawing cash at bank branches.
Cardoso reassured the public that the CBN will continue to monitor the situation closely and take appropriate actions to maintain liquidity in the financial system, particularly as the festive season approaches.
In addition to the penalties, the CBN has outlined plans to increase the cash buffer at various banks to ensure that ATMs are sufficiently stocked, especially during high-demand periods.
The bank is also working with mobile money operators and point-of-sale (PoS) agents to ensure alternative cash withdrawal methods are available to ease the strain on traditional banking channels.
