Recent inspections by the Central Bank of Nigeria (CBN) have revealed that Deposit Money Banks (DMBs) are prioritizing their VIP clients when distributing cash, leaving regular customers with insufficient access. The findings have raised alarm at the CBN, prompting the bank to prepare for imminent sanctions against any financial institution found guilty of this malpractice.
Sources disclosed that the CBN uncovered widespread preferential treatment in which cash supplies were hoarded for VIP customers, while ordinary customers faced difficulties accessing funds at branches and ATMs. As a result, the CBN is expected to take action, including imposing penalties on banks that violate fair cash distribution practices.
In addition to this, the CBN has set to impose a hefty fine of N150 million on any bank branch found illegally releasing newly minted naira notes to hawkers or agents involved in currency trading. This is part of the bank’s crackdown on improper cash flow management within the banking system.
To address these issues, the CBN has instructed DMBs to ensure equitable distribution of cash, both over-the-counter (OTC) and at ATMs. The central bank has also announced that it will intensify its supervision to ensure compliance, warning that banks found cooperating with Point-of-Sale (PoS) operators to restrict cash flow to regular customers will face severe penalties.
In its effort to enhance accountability, the CBN is encouraging the public to report instances where they face difficulties in accessing cash at bank branches or ATMs. Customers are advised to provide specific details, including the bank’s name, the amount involved, and the time and date of the incident when filing complaints.
The CBN emphasized the importance of public feedback to identify the challenges limiting cash availability. This move is part of a larger strategy to improve currency circulation and ensure fair treatment for all bank customers.
As the holiday season approaches, the demand for cash is expected to rise, and the CBN is keen to address the ongoing shortage that continues to hinder Nigerians’ ability to access funds. While some commercial bank customers in Lagos have complained about limited access to cash, POS operators appear to be better equipped to meet customer needs, fueling concerns about inequality in cash distribution.
The CBN’s intervention aims to restore public trust in Nigeria’s banking system and ensure that all customers are treated fairly as the economy gears up for the festive season.
