ATMs: CBN Reads Riot Act to Banks over Alleged Inhibition of Cash Circulation
*Says financial institutions conniving with PoS operators to frustrate customers
The Central Bank of Nigeria (CBN) yesterday read the riot act to banks over activities of their staff which was allegedly hindering the flow of cash in the economy.The central bank said it had observed that malpractices and desperation to support the profiteering motive of Point of Sale (PoS) operators in connivance with staff of banks – who are in many cases owners of the terminals – were inhibiting efficient circulation of cash.The warning to banks followed a THISDAY enquiry into allegations that Automated Teller Machines (ATMs) had been without cash amid claims that banks were trading cash with PoS operators.The CBN further disclosed that it has consistently made cash available to banks based on their request for withdrawals at any of the apex bank’s 37 locations nationwide.
This, the central bank noted, was evidenced by the significant increase in currency-in-circulation between the last quarter of 2023 and end-June 2024.The CBN further acknowledged that bank officials that own PoS terminals give priority to the operators to support their business.It added that spot checks had also revealed that PoS operators conducting business around ATMs often times take advantage of stranded customers.The CBN further disclosed that these operators corner/purchase cash from high cash generating entities including petrol stations and supermarkets at a premium to fund their operations, thereby disrupting flow of cash to banks for processing and redistributionIn response to this development, the central bank said it had issued circulars to direct deposit money banks to immediately put appropriate measures in place to address these observations.
“CBN will not hesitate to apply dissuasive sanctions on erring institutions for failure to comply with any of its regulations or where any of its official is found guilty of sabotaging the system,” the central bank told THISDAY.The CBN also directed banks to activate closer monitoring of all agents attached to their institutions and ensure they comply with provisions of the extant guidelines.
This was as the apex banking industry regulatory institution also said it was currently reviewing the guidelines on the operations of agency banking in the country with a view to ensuring agent banking operations are focused in the rural and remote communities to serve the unbanked population, as intended and prescribed, rather than concentrating their operations in the urban centres.However, this is not the first time the CBN had identified cases of collusion between banks and PoS operators.In December 2023, the CBN warned Deposit Money Banks (DMBs) and Point-of-Sale (POS) operators against acts that undermine the availability and flow of cash across the country.
The central bank also said it was investigating reported cases capable of defeating the smooth running of the economy.The bank in a statement issued by acting Director, Corporate Communications, Mrs. Sidi-Ali Hakama, had alluded to alleged cases of collusion between banks PoS operators which had reportedly affected the availability of cash as well as disruption of the circulation of the Naira.
Just In: Bandits Abduct Two Kaduna Journalists, Their Wives, Children
Two journalists, their wives and two children have been abducted from their homes in Danhonu community in Millennium City area of Kaduna. The bandits said to be in large number were said to have stormed the residences of AbdulGafar Alabelewe of The Nation Newspapers and AbdulRaheem Aodu of Blue Print Newspapers at 10:30pm on Saturday.Taofeeq Olayemi, a relation of Aodu confirmed the incident on Sunday.He said Alabelewe who is the Chairman of the Correspondents’ Chapel of the Nigeria Union Journalists (NUJ) in Kaduna, was abducted alongside his wife and two children, while Aodu was kidnapped alongside his wife.The two journalists are said to be close neighbours.Olayemi said the bandits were shooting sporadically before they abducted the journalists and their families.He said, “Initially, they picked Alhaji Abdulgafar, his wife, three of his children and a girl staying with him.But the girl was later asked to return back with one of the children and they went away with Abdulgafar, his wife and two children.“They shattered their doors, windows and removed their window burglary after scaling the fence”, Olayemi said.According to him, the bandits first broke into Aodu’s residence and picked him and his wife, leaving their sick daughter behind.He added that “they entered Abdulgafar’s house through the fence, forced his bedroom open and picked him, his wife and two of their children and left immediately”.Olayemi said by the time the community vigilantes arrived, the bandits had fled.Mansir Hassan, spokesperson of the Kaduna state police command, could not be reached when contacted as his mobile phone was not connecting.
Meanwhile, the Kaduna State Council of the Nigeria Union of Journalists (NUJ), has condemned the abduction of the journalists and their families.
In a statement on Sunday, the council appealed to security agencies to swing into action with a view to rescuing the journalists and their families from the kidnappers.
The statement jointly signed by Asmau Halilu and Gambo Santos, chairperson and secretary of the state council of the NUJ respectively, urged governments at all levels to intensify efforts towards guaranteeing the security of lives and property of citizens at all times.
The statement said “the ugly phenomenon of kidnapping in Kaduna and environs is now resurfacing and must be checked to avert the experiences of the recent past.”
The statement called for prayers for the safe return of the abducted journalists and their families.
It also urged journalists in the state to be vigilant in their daily activities.
