CBN urges consumers on ATM cash withdrawal issues, threatens ‘stringent penalties’ against erring banks

*Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria, asserts that banks and other financial institutions found engaging in malpractices or deliberate sabotage will face ‘stringent penalties’, particularly during high-demand periods, including festive seasons and year-end

Isola Moses | ConsumerConnect

In a bid to protect consumers of financial products and services in the banking ecosystem, the Central Bank of Nigeria (CBN) has directed commercial bank customers to report difficulties experienced with withdrawing cash from their bank branches, or Automated Teller Machines (ATMs) from December 1.

Dr. Olayemi Cardoso, Governor of CBN, stated this Friday, November 29, during the 2024 Annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN), in Lagos.

ConsumerConnect reports several bank customers and other consumers have expressed difficulty and disappointments over their inability to access funds at several banks’ ATM points in Nigeria for several weeks.

Dr. Olayemi Cardoso, Governor of CBN

Checks indicated that many consumers are being compelled to patronise Point of Sales (PoS) agents to get cash for transactions.

Cardoso, in his address on the occasion, however, urged consumers to make reports through the banking regulator’s designated phone numbers and e-mail addresses.

The CBN Chief stated: “Effective December 1, 2024, customers are encouraged to report any difficulties withdrawing cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.

“I repeat, financial institutions found engaging in malpractices or deliberate sabotage will face stringent penalties.”

According to Cardoso, the Bankers’ Bank will continue to maintain a robust cash buffer to meet the West African country’s needs, particularly during high-demand periods such as the festive season and year-end.

The CBN’s focus, he affirmed, is to ensure seamless cash flow for Nigerians while fostering trust and stability in the financial system.

CBN committed to enhancing confidence in Nigerian payments system

Cardoso, in his address, further noted that the payment system vision initiative for 2025 would enhance confidence in the country’s payments system.

He assured Nigerians that payment gateways in settling financial transactions also would be improved upon 2025, as identified delays would be addressed.

The Governor of CBN stressed that trust is fundamental to fostering digital transactions in the banking and financial industry.

The CBN will take every necessary step to preserve that trust in payments system, he assured.

As regards how delays often disproportionately affect vulnerable segments of the population, Dr. Cardoso also said the Bank would apply penalties against non-compliant financial institutions in order to safeguard consumer trust and ensure swift redress mechanisms in the sector.

He stated: “In 2025, CBN would prioritise initiatives including implementing an open banking framework, advancing contactless payment systems, and expanding its regulatory sandbox.

“Additionally, we will issue revised guidelines for agency banking and continue to strengthen electronic payment channels.”

CBN, Federal Government policies and regulations yielding fruit: CIBN President

Earlier, in his welcome address, Pius Olanrewaju, President and Chairman of Chartered Institute of Bankers of Nigeria, had observed that 2024 has been an eventful year for the banking industry and the economy.

Olanrewaju said various policies and regulations of the CBN and the Federal Government had begun to yield fruit.

He also explained: “For example, the Nigerian economy continues to be more resilient and agile as shown in the steady growth from 2.98 per cent in Q1 to 3.19 percent in Q2 and now 3.46 percent in Q3 of 2024.

“Likewise, the Nigerian banking industry has also shown resilience this year despite the macroeconomic pressures such as rising inflation, and exchange rate fluctuations, amongst others.

“The bank recapitalisation exercise also attests to the fact that we are well on our way towards not only strengthening the financial sector but also supporting a $1 trillion economy envisaged by 2030.”

Kindly Share This Story