CBN To Sanction Banks, PoS Operators Disrupting Naira Circulation

The Central Bank of Nigeria (CBN), on Thursday accused Deposit Money Banks (DMBs) and Point-Of-Sale (PoS) operators of colluding to make cash unavailable to customers thereby disrupting the seamless circulation of the Naira.

While frowning at such inappropriate actions by certain individuals, the CBN in a statement by Sidi-Ali, Hakama (Mrs.), Acting Director, Corporate Communications, warned banks and PoS operators to desist from such activities.

The statement said investigation on the reported cases is ongoing, because it is capable of undermining the smooth running of the economy, warning that “relevant sanctions shall be meted out to those found wanting.”

The apex bank also encouraged members of the public to use alternative payment channels, and report any case of unauthorized activities, such as capping and hoarding, by banks or PoS agents to the CBN branch in their locations or via the link: https://forms.office.com/r/frZJ0f2hFQ to address complaints and inquiries on the subject.

Recall that the CBN had last week blamed unrepentant hoarders for the scarcity of Naira currency notes being experienced in some major cities of the country.

Such hoarders, the bank lamented, fear a repeat of the challenges experienced during last year’s currency redesign project, assuring that it is addressing the reported cases of cash scarcity.

Corroborating this claim, Sidi Ali had explained that currency in circulation has risen from N1tr on of February 2023 to over N3.4tr as of December 11, confirming that there was sufficient cash in circulation, except that it was in the hands of individuals who were apprehensive due to their previous experiences.

The CBN, she said, is monitoring the situation and had released sufficient cash to its branches across the country for onward distribution to Deposit Money Banks (DMBs).

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