The Central Bank of Nigeria (CBN) has uncovered alarming reports of preferential treatment for VIP customers at commercial banks, leading to severe cash shortages for ordinary Nigerians.
A series of spot checks by the CBN revealed that many Deposit Money Banks (DMBs) were hoarding cash for their elite clients, leaving the average person struggling to access funds.
Sources inside the apex bank revealed that the situation has sparked concerns within the CBN, as it was discovered that VIP customers were getting preferential access to freshly minted naira notes, while others were left with little to no cash.
In response to these findings, the CBN has vowed to take decisive action, promising strict sanctions for banks found guilty of these unfair practices.
The CBN has announced a potential N150 million fine for banks caught supplying new naira notes to currency hawkers or agents involved in illegal cash flow activities.
“The CBN will not tolerate these practices, and banks found guilty will face heavy penalties,” a CBN official said.
The CBN has now directed all banks to ensure a fair and equitable distribution of cash, both over-the-counter (OTC) and at ATMs.
Banks must prioritize the needs of all customers, not just the wealthy few.
In addition, the CBN has warned financial institutions to avoid colluding with Point-of-Sale (PoS) operators who may restrict cash access to regular customers.
The apex bank also urged Nigerians to report any incidents where they face difficulties accessing funds, including the name of the bank, the amount involved, and the time and date of the occurrence.
In a statement, the CBN emphasized the importance of public feedback in addressing these issues.
“The feedback from Nigerians is crucial for improving cash distribution and maintaining public trust in the financial system,” said the official.
Nigerians who experience problems can reach out through the CBN’s contact channels, which include phone numbers and email addresses on the bank’s official website.
The latest cash shortage comes at a time when demand for cash is high, especially as the holiday season approaches.
In Lagos, customers have expressed frustration with the limited cash available at ATMs and bank counters.
On the streets of Victoria Island, many Nigerians complained that PoS operators had plenty of cash, but regular bank customers had to wait for hours to access their own money.
The CBN is aware of the rising tensions and has assured Nigerians that it is taking steps to improve the currency circulation system.
In a statement, the bank promised to restore confidence in the financial system by ensuring that all customers are treated equally, regardless of their status.
“We are committed to ensuring that the banking system remains transparent, efficient, and fair to every Nigerian,” the CBN official added.
This crackdown by the CBN is part of a broader effort to address systemic issues in the Nigerian financial sector.
The CBN has been under increasing pressure to restore trust in the banking system, which has been marred by inconsistent cash flow and long queues at ATMs.
As the country faces ongoing challenges related to currency management, many are hoping the CBN’s new measures will help alleviate the ongoing cash crisis.
