Nigerian Central Bank fines nine banks for ATM cash shortages

The Central Bank of Nigeria has penalised nine commercial banks for not ensuring sufficient cash was available at their automated teller machines during the country's festive season at the end of 2024.

Each of the nine banks was ordered to pay a fine of 150 million naira, the central bank announced. The regulator also indicated it would adopt stricter measures to ensure banks comply with cash flow requirements in future.

Nigeria's economy remains heavily cash-dependent despite repeated pushes toward digital payments. Many citizens rely on ATMs for everyday transactions, especially in the weeks surrounding Christmas and New Year when spending typically rises.

Shortages of cash at ATMs have been a recurring problem in parts of the country in recent years. Such shortages often lead to long queues, disrupted commerce and public frustration, particularly in smaller cities and rural areas where banking infrastructure is limited.

The central bank's action forms part of broader efforts to improve the performance of commercial banks and maintain stability in the cash circulation system. Nigerian authorities have previously introduced policies aimed at reducing cash hoarding and encouraging financial institutions to meet public demand.

The announcement comes as Nigeria continues to grapple with foreign exchange pressures and inflation, factors that can complicate cash management for both banks and their customers.

By holding the nine banks accountable, the regulator seeks to deter future lapses and reinforce the expectation that financial institutions must adequately serve the cash needs of the population during peak periods.

Based on reporting by Techpoint Africa.