For the first time in recent memory, Nigerians celebrated the Christmas and New Year period without the familiar frustration of cash scarcity. This historic shift is credited to a series of targeted reforms and strict regulatory enforcement spearheaded by the Central Bank of Nigeria (CBN) under Governor Olayemi Michael Cardoso.
A Holistic Review Yields Tangible Results
The CBN Governor established a special committee to conduct a comprehensive, end-to-end review of the entire cash lifecycle. This review spanned from currency production and transportation to distribution and final access by consumers. The goal was to tackle root causes, not just symptoms.
The outcome was a multi-pronged strategy. The CBN recalibrated its cash-printing models and issued new guidelines on the optimal ratio of ATMs to cards. It also strengthened requirements, mandating that banks seek CBN approval before closing any ATM or branch location. Perhaps most impactful was the enforcement of sanctions against banks whose ATMs failed to dispense cash, coupled with intensified supervision of payment agents and Point of Sale (PoS) operators nationwide.
The results were immediately visible across major cities like Lagos, Abuja, Kano, and Calabar. Bank branches, typically besieged by long queues during the festive season, operated smoothly. In areas like Ibeju-Lekki, Victoria Island, and Ikoyi, the notorious queues were absent. Customers like Mrs. Nkiru Onyema reported spending just 10 minutes to withdraw N20,000 over the counter, a scenario previously unimaginable during the holidays.
Enforcement and Digital Transformation Go Hand-in-Hand
The CBN backed its guidelines with strict enforcement. During the yuletide season, the apex bank sanctioned several Deposit Money Banks (DMBs) with fines of N150 million each for failing to ensure cash availability through their ATMs. Hakama Sidi Ali, the CBN's Acting Director of Corporate Communications, confirmed the penalties, stating the bank's commitment to maintaining public trust and economic stability.
Simultaneously, the CBN is accelerating Nigeria's digital finance transformation. Governor Cardoso highlighted that over 12 million contactless payment cards are now in circulation. The regulatory sandbox has expanded to host more than 40 fintech innovators, fostering safe experimentation. Revised agent-banking guidelines have tightened anti-money laundering controls while improving consumer protection.
This digital push has positioned Nigeria among Africa's most advanced digital payments markets, home to eight of the continent's nine fintech unicorns. By mid-2025, leading fintech apps had seen downloads surpassing 10 million each.
Facilitating Foreign Card Usage and Future-Proofing Payments
In a significant move for tourism and diaspora Nigerians, the CBN issued a circular directing all banks and financial institutions to ensure uninterrupted use of foreign-issued payment cards across ATMs, POS terminals, and online platforms. The directive, signed by Rita Sike, Director of the Financial Policy and Regulation Department, aims to improve access, security, and user experience.
Institutions must configure all terminals to accept international cards, maintain system availability, and clearly disclose exchange rates and charges before transaction completion. To curb fraud, multi-factor authentication is required for withdrawals exceeding $200 per day, $500 per week, or $1,000 per month.
Looking ahead, the CBN continues to innovate, recently releasing new e-payment guidelines for migration to the ISO 20022 standard for payment messaging and mandatory geo-tagging of payment terminals. Governor Cardoso urged continued vigilance, calling on fintechs and banks to strengthen Know-Your-Customer (KYC) processes and transaction monitoring to prevent fraud and protect vulnerable users.
Dr. Uju Ogubunka, President of the Bank Customers Association of Nigeria (BCAN), summed up the national sentiment, describing the seamless cash flow as a great sense of relief to bank customers. The CBN's combined approach of regulatory muscle, strategic review, and digital encouragement has, for now, turned the page on a perennial national headache.
