The Central Bank of Nigeria (CBN) fined some of Nigeria’s big banks, including Fidelity, First Bank, Keystone Bank, and Union Bank, because they didn’t make enough money available for people to withdraw from ATMs during the festive season.
Other banks, such as Zenith Bank, United Bank for Africa (UBA), Globus Bank, Providus Bank, and Sterling Bank, were also punished for doing the same thing.
What Did CBN Say?
Hakama Sidi Ali, a spokesperson for the CBN, explained that the bank wants everyone to have easy access to cash, especially during busy times like Christmas. She warned that banks that don’t follow the rules will face even stricter punishments.
To make sure this doesn’t happen again, the CBN is checking if banks are holding back cash or breaking other rules, such as the daily withdrawal limit for point-of-sale (POS) operators, which is ₦1.2 million.
How Much Were the Banks Fined?
Each bank was fined ₦150 million. The CBN took the money directly from their accounts as punishment for not following its cash distribution guidelines.
Why Is This Important?
During times like Christmas, many people need cash to buy gifts, travel, or take care of their families. When banks don’t make enough cash available, it creates problems for everyone. The CBN wants to make sure this doesn’t happen and that people can trust the banks to do their job.
What’s Next?
The CBN has promised to keep monitoring banks closely. Olayemi Cardoso, the CBN governor, reminded banks to follow the rules or face even bigger penalties in the future. He said the goal is to make sure Nigeria’s banking system is strong, trustworthy, and works for everyone.
By taking these actions, the CBN hopes to make life easier for people and ensure there’s always enough cash for everyone when they need it.
