CBN Tackles End-Year Cash Scarcity with Stronger Regulation

The Central Bank of Nigeria (CBN) has strengthened operational discipline across the financial system, ensuring steady cash availability for Nigerians during peak periods, particularly the Christmas and New Year seasons.

A special committee set up and chaired by CBN Governor, Olayemi Cardoso, reviewed the country’s recurring cash scarcity challenges and implemented measures that delivered noticeable relief to households and businesses nationwide.

For the first time in recent years, the 2025 festive season passed without widespread complaints of cash shortages at banks, Automated Teller Machines (ATMs) and other cash-dispensing channels.

Banks, ATMs Well-Stocked Nationwide

Checks across major cities, including Lagos, Abuja, Kano and Calabar, showed improved cash availability in banking halls and ATMs.

Customers were able to access cash over-the-counter, while ATMs in commercial hubs such as Victoria Island, Ikoyi, Ikeja and Ibeju-Lekki were fully loaded, eliminating the long queues traditionally associated with the season.

In Garki, Abuja, Broad Street, Lagos, and other business districts, ATMs remained operational throughout the period, allowing seamless withdrawals.

Customers, Traders Applaud Reforms

Market traders and bank customers praised the CBN for finding lasting solutions to the perennial cash crunch.

Mrs. Nkiru Onyema, a bank customer, said she spent just 10 minutes to withdraw ₦20,000 over the counter. “I am happy that the old practice of long queues in banks and ATMs is over,” she said.

Another customer, Stephen Abiodun, confirmed he was able to withdraw cash from an ATM within 15 minutes, noting that reduced waiting time allowed people to focus on more productive activities.

CBN Explains Holistic Cash Management Strategy

Speaking at the Chartered Institute of Bankers of Nigeria (CIBN) bankers’ dinner in Lagos, Cardoso explained that the CBN adopted an end-to-end review of the entire cash lifecycle.

“Our starting point was a comprehensive review of cash production, transportation, distribution and access by consumers,” he said.

According to him, the apex bank recalibrated cash-printing models, issued guidelines on optimal ATM-to-card ratios, strengthened approval requirements for ATM and branch closures, enforced sanctions on banks with non-dispensing ATMs, and intensified supervision of payment agents and POS operators.

Digital Finance Transformation Accelerates

Beyond cash management, the CBN said Nigeria’s digital finance ecosystem recorded significant progress in 2025.

The apex bank extended its Payment System Vision roadmap to 2028, expanded its regulatory sandbox to over 40 fintech firms, and disclosed that more than 12 million contactless cards are now in circulation.

Revised agent-banking guidelines tightened anti-money-laundering controls while improving consumer protection, positioning Nigeria among Africa’s most advanced digital payments markets.

Foreign Card Usage, POS Regulation Strengthened

The CBN also directed banks and financial institutions to ensure uninterrupted use of foreign-issued cards across ATMs, POS terminals and online platforms nationwide.

Under the directive, institutions must clearly disclose exchange rates and charges, maintain sufficient liquidity, strengthen fraud monitoring, and comply with transaction limits, including enhanced authentication for higher-value transactions.

The move aims to improve convenience for tourists and Nigerians returning from the diaspora, especially during the festive season.

Sanctions Enforced for Policy Violations

To reinforce compliance, the CBN sanctioned Deposit Money Banks (DMBs) that failed to make naira notes available through ATMs during the yuletide.

Each defaulting bank was fined ₦150 million, debited directly from their accounts with the apex bank.

Acting Director of Corporate Communications, Hakama Sidi Ali, said the CBN would not hesitate to impose further sanctions, stressing that seamless cash flow is critical to public trust and economic stability.

CBN Reaffirms Zero-Tolerance for Non-Compliance

Cardoso reiterated the CBN’s commitment to maintaining a robust cash buffer and enforcing strict compliance across the financial system.

“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” he said.

Analysts say the reforms signal a shift toward proactive cash management and stronger regulation, reducing disruptions during high-demand periods and reinforcing confidence in Nigeria’s banking system.