The Central Bank of Nigeria (CBN) has threatened to impose sanctions on erring players in the financial sector over cash scarcity at Automated Teller Machines (ATMs).
The CBN Governor, Olayemi Cardoso, made the statement on Friday at the annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria in Lagos.
Recently, there have been reports of cash scarcity at banks, both at ATMs and at the counter.
Cardoso stated, “We also recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians.
“To address this, we are conducting spot checks across the Deposit Money banks, and we impose penalties on the underperforming institutions. Effective December 1, 2024, customers are encouraged to report any difficulties with joint cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.
“Guidelines will be distributed widely to raise public awareness. We will also urge full regulative compliance by all stakeholders, including mobile money operators and POS agents, to promote digital transaction channels and improve service delivery. I repeat, financial institutions found engaging in malpractices or sabotage will face changing penalties.
“The CBN will continue to maintain a robust cash offering to meet the country’s needs, particularly during high demand periods such as the festive season and year-end.”
The governor of the CBN also stated that so far, nearly N1tn has been recovered from development programs.
Cardoso also announced the discontinuation of intervention programs at the 2023 Bankers Dinner and revealed that CBN pumped over N10tn into the economy through different initiatives in sectors ranging from agriculture, aviation, power, youth, and many others.
He said, “As previously noted, the Central Bank’s return to orthodox monetary policy means that we will refrain from direct intervention in developmental initiatives. That said, I am pleased to report that as of October 2024, nearly N1tn has been recovered or repaid under previous development finance programs, thanks to the enhanced monitoring and enforcement of the guideline.
“Our focus remains on ensuring the effective utilisation and recovery of outstanding loans within the framework of established guidelines. While development finance has a role in the economy of Nigerians, it must be approached with proper governance to achieve meaningful impacts.”
“On the outlook, Cardoso projected that with the improved framework for deploying products targeting the Nigerian diaspora and efforts to establish a well-founded FX market, “We anticipate increased diaspora and foreign investment over the next 12 months building on more resilient and liquid FX markets.”
Furthermore, he stated that the apex bank has in its sight a monthly inflow of $1m in diaspora remittance.
“I recall when we took the view that it was important to focus on the diaspora remittances, and at that time, we said double. People thought it was an impossible thing to do, and it happened. As a result of that, we are even more happy to look at a target of $1m per month in the not-too-distant future,” he added.
Meanwhile, Babajide Sanwo-Olu, governor of Lagos State and governor of the Central Bank of Nigeria, were conferred CIBN fellowship.
