On November 29, 2024, the Central Bank of Nigeria (CBN) announced a crucial directive for bank customers to report any difficulties faced while withdrawing cash from ATMs or bank branches, effective December 1, 2024. This program attempts to solve the persistent cash shortages that have irritated many Nigerians and afflicted the banking industry.
The Central Bank of Nigeria (CBN) on Friday directed bank customers to report any difficulties faced while withdrawing cash from ATMs or bank branches, effective December 1, 2024. This program attempts to solve the persistent cash shortages that have irritated many Nigerians and afflicted the banking industry.
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Background of the cash withdrawal challenges
The CBN’s announcement highlights increasing citizen complaints regarding the scarcity of cash at ATMs and banks.
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Governor Olayemi Cardoso acknowledged these challenges during the annual bankers’ dinner in Lagos, organised by the Chartered Institute of Bankers of Nigeria (CIBN).
He stated, “We recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians.” Due to the cash crunch, many individuals have turned to point-of-sale (POS) operators, often facing higher service charges.
To combat these issues, the CBN will conduct spot checks on Deposit Money Banks (DMBs) starting December 1, imposing penalties on those lacking service delivery.
Cardoso emphasised that financial institutions engaging in malpractices will face stringent penalties, reinforcing the CBN’s commitment to accountability and improved service delivery.
Reporting mechanism and future initiatives
Customers are encouraged to report any cash withdrawal issues directly to the CBN via designated state-specific phone numbers and email addresses.
Cardoso assured us that the reporting guidelines will be widely disseminated to raise public awareness.
He stated, “These penalties are not just punitive; they are designed to foster accountability and improve service delivery.”
Looking ahead, the CBN is implementing its Payments System Vision (PSV) 2025, which aims to enhance digital transactions and improve overall financial stability. Key initiatives under this vision include:
Open banking framework: Promoting collaboration among financial service providers.
Contactless payment dystems: Expanding consumer options through technologies like Quick Response (QR) codes.
Regulatory Sandbox: Allowing fintech companies to safely innovate and test new products.
Cardoso highlighted that these efforts are essential for building trust in digital transactions, stating, “Trust is fundamental to fostering digital transactions.” The CBN aims to preserve consumer confidence by ensuring swift redress mechanisms for customer issues.
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Additionally, Cardoso noted that Nigeria is on track to exit the Financial Action Task Force (FATF) grey list by Q2 2025. He mentioned that enforcement plans against money laundering, cybercrime, fraud, and corruption are being intensified as part of broader efforts to enhance the integrity of Nigeria’s financial system.
CIBN President/Chairman Prof. Pius Deji Olanrewaju lauded Nigeria’s economy and banking sector’s resilience despite macroeconomic headwinds. He credited government and CBN policies for stable GDP growth from Q1 to Q3 2024.
“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 per cent in Q2 and now 3.46 per cent in Q3 of 2024.
“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,” he said.
According to Olanrewaju, the Nigerian banking industry has been strong this year, even though the economy has had problems, such as rising prices and changes in the exchange rate.