Banks Resume Dispensing of Cash Across Lagos to MeetDemand During Yuletide

Nume Ekeghe

After weeks of cash shortages, banks have resumed dispensing cash in their banking halls and via Automated Teller Machines (ATMs) across Lagos, offering relief to residents.

This improvement followed the Central Bank of Nigeria’s (CBN) strict measures to curb cash hoarding and diversion by Deposit Money Banks (DMBs).

The CBN recently announced penalties to enforce compliance, warning banks against diverting cash to unauthorised hawkers or engaging in practices restricting access to funds.

According to the CBN, banks found guilty of such infractions now face a 10 per cent fine on the value of cash withdrawn from the apex bank, with repeat offenses incurring additional fines of five per cent.

In response to the regulatory clampdown, banks have increased cash disbursements both over the counter and through ATMs. Mystery shopping exercises and spot checks conducted by the CBN have reinforced compliance, ensuring cash flow to the public as the festive season approaches.

In a widespread investigation, across DMBs across Lagos yesterday, customers reported a significant improvement, with shorter queues at ATMs and consistent cash availability.

“For weeks, accessing cash was almost impossible, and I had to rely on PoS operators who charged high fees. Today, I withdrew cash from an ATM without any issues. This is a big relief,” said a customer, Amarachi Ofor, who visited an ATM.

In Surulere, another customer, Jubril Ibrahim who was unaware of the CBN directive said: “I don’t know where all this money is coming from. It’s like they printed money plenty because I can withdraw from bank and even bank ATMs are working. This I have not seen in a while.”

A teller at a big supermarket in Ikeja noted that they have been having more cash at the register unlike prior where only cards were used to make purchases.

Another customer, Ibrahim Wale, noted: “It’s encouraging to see ATMs dispensing cash again. I hope this trend continues, especially as we prepare for the festive season when the demand for cash is usually higher.”

A bank customer, Bola Adegoke, shared her relief after withdrawing cash from an ATM in Yaba. “It was exhausting having to search for ATMs that were working. Even when you found one, the queues were endless. Now, I can withdraw cash without any stress. I just hope this continues, especially as Christmas approaches when everyone will need more money,” she said.

Taxi driver, Yusuf Bello echoed similar sentiments, highlighting the impact on his business saying, “There was a time I couldn’t even buy fuel because I couldn’t access cash. Customers didn’t have cash to pay either, so business was bad. Things are better now, and it’s helping us move forward.”

The CBN’s actions appear to be working, with many banks now ramping up compliance. A branch manager at a leading commercial bank in Victoria Island, who spoke on condition of anonymity, noted that the directive from the apex bank had put significant pressure on banks to ensure steady cash availability. “We have intensified our focus on cash disbursement through ATMs to meet customer needs. The CBN’s monitoring teams are very active, and no bank wants to be fined,” he said.

Despite the improvements, some Lagosians remain cautious about whether the gains will last. “It’s good that cash is flowing now, but this isn’t the first time we’ve seen temporary fixes,” said Mary Okon, a small business owner in Surulere. “We need assurance that this will continue throughout the festive season. Nigerians deserve reliable access to their money,” she added.