The Central Bank of Nigeria (CBN) has issued a stern warning to Deposit Money Banks and Point of Sale (PoS) operators, threatening dissuasive sanctions for non-compliance with regulations aimed at ensuring efficient cash circulation in the economy.
In a statement released on Friday, the CBN expressed concern over the activities of bank staff, which it alleged were hindering the flow of cash in the economy. The central bank noted that malpractices and desperation to support the profiteering motive of PoS operators, often in connivance with bank staff who own PoS terminals, were inhibiting efficient cash circulation.
The warning follows an investigation into allegations that Automated Teller Machines (ATMs) had been without cash, amid claims that banks were trading cash with PoS operators.
The CBN has consistently made cash available to banks based on their request for withdrawals at any of its 37 locations nationwide, evidenced by a significant increase in currency-in-circulation between the last quarter of 2023 and end-June 2024.
However, the central bank acknowledged that bank officials who own PoS terminals often give priority to PoS operators to support their business, while spot checks revealed that PoS operators conducting business around ATMs often take advantage of stranded customers.
The CBN has urged banks to desist from undermining cash availability and to prioritize the needs of their customers. The central bank has also warned PoS operators against exploiting stranded customers and has threatened to impose sanctions on any bank or PoS operator found to be in violation of its regulations.
