The Central Bank of Nigeria (CBN) has stated that banks that do not address persistent cash scarcity at ATMs run the risk of being penalized. Speaking at the Chartered Institute of Bankers of Nigeria’s (CIBN) annual Bankers’ Dinner, CBN Governor Olayemi Cardoso emphasized how the crisis disproportionately impacts average Nigerians and warned that negligent financial institutions will suffer dire repercussions. Cardoso underlined the CBN’s dedication to guaranteeing sufficient cash flow across the nation. He pointed out that banks must follow instructions to load ATMs and distribute cash effectively in order to lessen the difficulties Nigerians encounter.
In response to public complaints, the CBN has directed banks to give priority to cash disbursement at ATMs and declared that, as of December 1, 2024, customers will be able to contact the central bank directly through specific channels to report difficulties with cash withdrawals. This strong stance follows several frustration voiced by Nigerians on Social Media about the continuous lack of cash at ATMs. Many people shared their experiences of lengthy lines, unsuccessful efforts to withdraw money, and a significant reliance on Point of Sale (PoS) operators.
ATM daily withdrawal limits of ₦40,000 raise concerns.
Posts on social media platforms, particularly X, called attention to the financial burden that withdrawal limits place on people, who find it difficult to obtain enough money for everyday expenses. Users also point out that certain ATMs remain continuously empty or dispense only relatively small sums, forcing users to visit many locations to suit their demands. Hoarding over the holiday season, an annual recurrent trend, and ATM daily withdrawal limits of ₦40,000 per client, which banks have imposed to manage limited supply, have made the cash scarcity worse.
Cardoso highlighted that spot checks on banks will continue to ensure compliance. He also underlined measures to strengthen the regulatory environment for POS agents and mobile money carriers in order to guarantee better service delivery and encourage digital transaction channels. The lingering cash scarcity has rekindled memories of the challenges encountered during the 2023 Christmas season as a result of the cash redesign policy, which also disrupted access to funds. While acknowledging these worries, Governor Cardoso maintained that the situation will stabilize provided all parties involved adhered to the current measures.
Public urged to report any instances of anomalies.
CBN has remained steadfast in its attempts to alleviate the nation’s persistent cash constraint. The apex bank has already taken significant action, Governor Olayemi Cardoso stressed, with plans to put ₦1.4 trillion into circulation over the course of the next three months. This measure is expected to address liquidity issues and ensure automated teller machines (ATMs) have enough cash on hand for public use are the goals of this measure. The bank has also initiated a monitoring program that includes spot checks and mystery shopping at commercial banks to ensure that instructions are being followed.
Any bank found to be hoarding cash, giving high priority to Point-of-Sale (PoS) operators or over the counter clients over ATMs may be subject to harsh penalties. Additionally, the apex bank has promised prompt action against violators and encouraged the public to report any instances of anomalies in cash disbursement. Despite these actions, the CBN has come under fire from Nigerians who are angry about the ongoing cash scarcity, especially as the Yuletide season draws near.
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Moreover, the CBN has assured that it remains committed to maintaining a strong financial system and stabilizing cash availability to serve the needs of Nigerians, particularly in times of high demand. The apex bank is under pressure to return things to normal as the holiday season draws near and avoid causing more hardship to the people who depend on cash for everyday transactions. While the festive season is likely to temporarily increase demand for cash, the system is expected to return to normal in the coming year. The bank has urged Nigerians to exercise patience as it works to enhance cash flow and guarantee accountability in the banking industry.