The Central Bank of Nigeria (CBN) has investigated and discovered that the preferential treatment of VIP customers by some commercial banks is the reason for the current cash scarcity affecting millions of Nigerians.

A source from the apex bank noted that there is a widespread preferential treatment for VIP customers, with cash hoarded for their use.

This makes it difficult for regular customers to access their money across the counters and at automated teller machines (ATMs).

CBN has imposed strict penalties on banks that participate in these unethical practices.

In a circular addressed to banks, signed by Mohammed Olayemi, the Acting Director of the Currency Operations Department, CBN noted that it would fine N150 million for any bank branch found guilty of channelling freshly minted naira notes to currency hawkers or unscrupulous agents.

The apex bank also directed banks to ensure equitable cash disbursement over-the-counter (OTC) and through ATMs.

The CBN also cautioned that strict penalties would be imposed on banks found working with point-of-sale (PoS) operators to limit cash flow to regular customers.