The Central Bank of Nigeria (CBN) says N1.4 trillion will be distributed in the next three months to aid cash flow within the banking system.
Olayemi Cardoso, CBN governor, spoke on Tuesday during a press conference in Abuja.
Speaking on the issue of cash insufficiency in most bank’s automated teller machine (ATM), Cardoso said the apex bank is working closely to ensure that there is sufficient cash in the system.
According to the CBN governor, banks do not have any excuse not to dispense cash.
Another N1.4 trillion is likely to be delivered in another three months to aid that whole process of cash within the system,” he said.
“So from our perspective, we are doing everything possible to ensure that there is sufficient cash in the system. There is no excuse for not having sufficient cash in the system.
“Now it goes to the deployment of that cash and quite frankly, we are working very, very closely, we are engaging with all the deposit money banks to ensure that they are putting these things through their ATMs, effectively dispensing cash to those that are in need.
“And whether they are in need or not, that’s the function of the deposit money banks. And at all points in time, there should be sufficient cash in their system that nobody should go there without being able to withdraw.”
CBN TO SANCTION BANKS NOT DISPENSING CASH
Cardoso said a monitoring system has been put in place to check the services of the banks.
He added that there will be sanctions if any bank fail to dispense cash.
“We ourselves, have devised a monitoring system, a spot-checking system, whereby we will go to the banks and just ensure that these things are done in the way and manner in which they are meant to be done,” he said.
And if they are not, again, there will be sanctions but I believe that at the stage we are in now, everybody realises that stakeholders play their part in ensuring that cash gets to the desired places they are intended to be.”
Late last year, there were cases of cash scarcity.
On November 2, 2023, the apex bank said the scarcity experienced in some locations was due to a high volume of withdrawals from its branches by banks and panic withdrawals by customers from ATMs.
The CBN also said there was sufficient stock of currency notes for economic activities in Nigeria and assured its branches across the country were working to ensure seamless cash circulation in their respective states of operation.
While the scarcity persisted, the apex bank, on December 13, 2023, blamed the situation on hoarding, adding that most of the cash given to banks was in the hands of individuals.
However, on April 3, TheCable reported that commercial banks had set withdrawal limits on their ATMs.
It was observed that cap set on account holders restricts the customers to a certain amount should they attempt to withdraw from a different bank.
One of the banks had also advised that withdrawals should be limited to one bank card per transaction when using the company’s ATM “to avoid cash shortage”.