In a bid to address ongoing cash availability issues and improve service delivery at financial institutions, the Central Bank of Nigeria (CBN) has announced a new initiative encouraging bank customers to report difficulties withdrawing cash from ATMs and branches starting December 1, 2024.
Governor Olayemi Cardoso revealed the directive at the 2024 Annual Bankers Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, stressing the need for enhanced transparency and accountability within the banking sector.
Governor Cardoso acknowledged that cash withdrawal problems at ATMs and branches have been a persistent issue for ordinary Nigerians, especially during periods of high demand.
To combat this, the CBN will conduct spot checks on Deposit Money Banks (DMBs) to identify and penalize underperforming institutions. The apex bank plans to take stringent action against banks found engaging in practices that exacerbate cash shortages or hinder access to cash.
“We recognize the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians. To address this, we are conducting spot checks across Deposit Money Banks (DMBs) and will impose penalties on underperforming institutions,” Cardoso stated during his speech.
From December 1, 2024, the CBN has set up designated state-specific phone numbers and email addresses to enable customers to report any difficulties experienced when attempting to withdraw cash.
These channels will allow customers to directly communicate with the CBN, helping the bank monitor and address issues across different states.
Cardoso assured the public that guidelines and reporting procedures would be widely distributed to ensure citizens are aware of the new system.
“We are committed to enhancing transparency, and this reporting mechanism will empower customers to hold financial institutions accountable,” he added.
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Cardoso emphasized that compliance from all stakeholders, including banks, mobile money operators, and PoS agents, is critical to improving cash availability and service delivery.
The CBN plans to enforce strict penalties for institutions found guilty of malpractices or deliberate sabotage in cash management.
“I repeat, financial institutions found engaging in malpractices or deliberate sabotage will face stringent penalties,” Cardoso warned.
“Trust is fundamental to fostering digital transactions. The CBN is taking every necessary step to preserve trust in payment systems and ensure timely and secure payments,” he noted.
The CBN also plans to improve payment gateways for financial transactions and issue revised guidelines for agency banking as part of the Payment System Vision 2025.
Governor Cardoso also discussed broader measures aimed at strengthening the financial ecosystem, including Nigeria’s goal to exit the Financial Action Task Force (FATF) grey list by Q2 2025. The CBN has outlined plans to combat money laundering, cybercrime, fraud, and corruption to ensure a sound and secure financial system.
During the event, Prof. Pius Deji Olanrewaju, President/Chairman of CIBN, commended the resilience of Nigeria’s banking sector despite the challenging macroeconomic environment.
He highlighted steady GDP growth from Q1 to Q3 of 2024, attributing the positive performance to government policies and CBN interventions.
Olanrewaju pointed out that the Nigerian economy demonstrated resilience through consistent growth, with GDP increasing from 2.98% in Q1 to 3.46% in Q3 of 2024. He also noted the successful bank recapitalization efforts, which are expected to strengthen the financial sector and contribute to the country’s goal of becoming a $1 trillion economy by 2030.
With the implementation of the new reporting system and increased scrutiny on financial institutions, the CBN is determined to improve cash availability and ensure a more efficient banking system.
The success of this initiative will depend on the cooperation of both the public and financial institutions in adhering to the new guidelines. Additionally, as Nigeria continues to develop its digital payment infrastructure, these steps are crucial for fostering greater trust and accessibility in the financial sector.