The Central Bank of Nigeria, CBN, has charged bank customers to report difficulties in getting cash at banks or Automated Teller Machines, ATMs, across the country, starting Sunday, December 1, 2024.
This is even as the apex bank stated its readiness to revive the eNaira system to foster cross border payments. The bank noted that this would form part of its goals for the Payment System in 2025.
This was disclosed by the CBN Governor, Olayemi Cardoso while speaking at the 2024 Bankers Dinner .
Reacting to the cash crisis most Nigerian are facing in banks and ATMs, Cardoso warned that the CBN would sanction any defaulting banks.
He said, “Banks face stringent penalties if they fail to make cash available to customers in the banking halls as well as in their ATMs.
The CBN boss stated that the apex bank is also concerned about delays in settlement of transactions in the financial system. He also warned that there will be strict penalties for banks who fail to comply with cash availability and prompt settlement of transactions.
“Over recent delays in some payment gateways in settling financial transactions. Trust is fundamental to fostering digital transactions. And we must take every necessary step to preserve that trust in our payment systems. These delays often disproportionately affect vulnerable segments of our population. To address this, we will impose strict penalties on non-compliant institutions. This is in order to safeguard consumer trust and ensure swift redress mechanisms are in place.
“We also recognize the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians. To address this, we are conducting spot checks across Deposit Money Banks (DMBs) and will impose penalties on underperforming institutions.
“Effective December 1, 2024, customers are encouraged to report any difficulties withdrawing cash from bank branches or ATMs directly to the CBN. Through designated phone numbers and email addresses for their respective states. Guidelines will be distributed widely to raise public awareness. We also urge full regulatory compliance by all stakeholders. Including Mobile Money Operators and PoS Agents, to promote digital transaction channels and improve service delivery. I repeat, financial institutions found engaging in malpractices or deliberate sabotage will face stringent penalties.
Speaking on foreign exchange, the CBN Governor said, “The previous harsh Forex policies had stifled the much needed foreign investment. And led to the depletion of our external reserves which fell to $33.22 billion in December 2023. It must also be understood that the cost of the forex subsidy regime is estimated to far exceed that of fuel subsidies.
“In 2022 alone, the potential revenue lost due to a less flexible forex regime was approximately N6.2 trillion. This was compared to N4.5 trillion from fuel subsidies. These funds could have significantly contributed to critical investments in education, healthcare, and infrastructure development.
“In the past year, we have undertaken critical reforms to unify Nigeria’s exchange rate, eliminating distortions and restoring transparency. This unification has enabled us to clear the outstanding foreign exchange obligations. And giving businesses—ranging from manufacturers to airlines—the confidence to plan and invest in the future.”
Cardoso noted that the improved functioning of our forex market are having the desired impact.
According to him, average daily turnover in the Nigerian Autonomous Foreign Exchange Market increased by 226 percent in the 1st half of the year. This, he said is when compared to the same period in 2023.
He said, “Foreign portfolio inflows have increased by over 72 per cent during this period. While foreign exchange reserves have risen from $32 billion in May 2023 to over $40 billion today. This represents the equivalent of eight months’ import cover and marks the highest reserve level in nearly three years.”
“The market has also supported over $9 billion in capital outflows over the past year. As investors were able to freely repatriate capital and dividends without the need to wait for several months as experienced in the past. These results reflect improved confidence in the reforms we have embarked on.
“In addition, we witnessed a $6 billion current account surplus in the first half of 2024 as a result of the impact of these reforms. This was achieved through reduction in petroleum product imports supported by improved domestic refining capacity. And a growing focus on non-oil exports and higher remittance inflows helped to support the positive current account balance.
source: Leadership
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