CBN spot checks reveal cash favoritism towards VIPs, warns banks of heavy sanctions

The Central Bank of Nigeria (CBN) has uncovered widespread preferential treatment for VIP customers during cash disbursement by Deposit Money Banks (DMBs), leaving ordinary customers struggling to access funds.

This revelation emerged from recent spot checks conducted by the apex bank.

Sources disclosed that the CBN was alarmed by the hoarding of cash for elite customers, while the general public faced severe difficulties in accessing money at bank counters and ATMs. In response, the CBN has pledged to impose stringent sanctions on banks involved in such practices, including a N150 million fine for branches found supplying freshly minted naira notes to currency hawkers or agents engaging in illicit cash flow activities.

Corrective Measures

The CBN has directed banks to ensure fair and equitable cash disbursement across all customers, both over-the-counter (OTC) and at ATMs. Additionally, the apex bank has warned against collusion with Point-of-Sale (PoS) operators to restrict cash flow to ordinary customers.

To enhance transparency and enforcement, the CBN has urged the public to report difficulties in accessing cash. Complaints should include details such as account name, bank branch, amount involved, and the time and date of the incident. Reports can be submitted via CBN’s contact channels in each state, including phone numbers and email addresses available on the CBN website.

Public Feedback Encouraged

The CBN emphasized that public feedback is critical to resolving bottlenecks in cash availability. “The apex bank’s commitment to equitable cash distribution aligns with its role as a regulator to safeguard the financial system and maintain public trust,” a CBN official stated.

Festive Season Concerns

With the holiday season approaching, demand for cash has surged, further straining the banking system. Many customers in Lagos, including those at Ajose Adeogun, Victoria Island, expressed frustration over limited cash disbursement, while PoS operators reportedly had abundant cash to dispense.

The CBN assured Nigerians of its efforts to enhance currency circulation, restore confidence in the financial system, and ensure fair treatment for all customers. Banks found violating the new directives face severe repercussions as the regulator intensifies its oversight.