CBN - NEWS AGENCY OF NIGERIA

Abdulrahman Kadiri
Jan, Wed, 2025

CBN sanctions 9 banks for failing to dispense cash via ATMs

196 total views today

By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN) says it has sanctioned some Deposit Money Banks (DMBs) for failing to make Naira notes available through automated teller machines (ATMs), during the yuletide season.

According to a statement by Hakama Sidi-Ali, CBN’s Director, Corporate Communications Department, this is a clear message of zero tolerance for cash flow disruptions.

The affected banks are Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc,
Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.

Sidi-Ali said that each of the banks was fined N150 million for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches.

She said that the enforcement
action followed repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.

“Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.

“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.

“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she said.

She said the CBN’s investigations and monitoring would continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.

She added that the CBN was working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.

She urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.

The News Agency of Nigeria (NAN) reports that the CBN Governor, Yemi Cardoso, had earlier warned banks to strictly adhere to cash distribution policies or face severe penalties.

Cardoso gave the warning in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Nov., 2024.

He underscored the apex bank’s commitment to maintaining a robust cash buffer to meet the need of Nigerians.

“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso had said.(NAN)(www.nannews.ng)

Edited by Gregg Mmaduakolam/Muhyideen Jimoh

Tosin Kolade
Nov, Tue, 2024

Economy/Business

CBN raises interest rate to 27.50%

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By Kadiri Abdulrahman

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has further raised interest rate by 25 basis points to 27.50 per cent from 27.25 per cent.

The Governor of the CBN and Chairman of the MPC, Yemi Cardoso, announced the raise on Tuesday in Abuja, while presenting a communiqué after the 298th meeting of the committee.

Cardoso, however, announced that the committee also decided to hold all other parameters constant.

The MPC, thus, retained the Cash Reserved Ratio (CRR) at 50 per cent for Deposit Money Banks (DMBs) and 16 per cent for merchant banks, retained the Liquidity Ratio at 30 per cent, and also retained the Assymetric Corridor at +500/-100 basis points around the MPR.

Cardoso said that the decisions were unanimously adopted by all 12 members of the MPC who were present at the meeting.

The News Agency of Nigeria (NAN) reports that Tuesday’s decision is the sixth consecutive tightening of the MPR since Cardoso assumed office as CBN governor.

The first decision under Cardoso was an aggressive hike in the MPR by 400 basis points from 18.75 per cent to 22.75 per cent in February.

In March, the committee, again, increased the MPR by 200 basis points to 24.75 per cent, followed by subsequent hikes to 26.25 in May, 26.75 per cent in July, and 27.25 basis points in September.

Cardoso has, thus, raised the MPR by 875 basis points since he assumed office.

These decisions are aimed at combating inflation, stabilising the economy, and promoting economic growth.(NAN)(www.nannews.ng)

Edited by Kevin Okunzuwa/Sadiya Hamza

Tosin Kolade
Nov, Tue, 2024

Economy/Business

Beware of fraudulent contracts, project funding claims – CBN

312 total views today

By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN) has warned Nigerians about fraudsters claiming to have received contract award letters for construction projects.

According to a statement by CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Ali, the fraudsters also usually lay claims to procession of special financial interventions on behalf of the CBN.

She said that it was false, as such individuals were solely motivated by the desire to defraud unsuspecting Nigerians.

“Any such assertions are fraudulent and should be
disregarded.

“The CBN hereby reiterates that, in line with the focus of its current management, it has discontinued direct development interventions and special projects funding,” she said.

She further said that the apex bank had not authorised public notices for such interventions on social media platforms or any other news outlet.

“The CBN remains committed to its core mandate of ensuring monetary and price stability, and a sound and efficient financial system in Nigeria.

“We, therefore, encourage the public to remain vigilant and promptly report any suspicious
activities or publications to the relevant law enforcement agencies,” she said.(NAN)(www.nannews.ng)

Edited by Sadiya Hamza