Sterling Bank gifts customers free transfer after report of hoarding new Naira notes

Following discovery that Sterling Bank was hoarding the new Naira notes, preventing its customers from accessing their funds, the firm has waved charges on transfers.

A monitoring team of the Central Bank of Nigeria (CBN) had uncovered new Naira notes worth N6 million hidden in Sterling Bank branch located in Ado-Ekiti.

Sterling Bank had hoarded the redesigned Naira notes despite CBN’s standing order that the new N200, N500 and N1,000 banknotes should be loaded into the Auto Teller Machines (ATM) to dispense to customers or provide it over the counter.

Sterling Bank risks N1 million fine per day for hoarding the money according to CBN’s Deputy Director, Oluwole Owoeye, “I am currently at Sterling Bank, on Bank Road as part of the new naira notes monitoring compliance with the guidelines by CBN. They have N6 million, which they collected from the bank for almost two weeks, they have not disbursed any.

Read also:CBN threatens Sterling Bank for allegedly hoarding new Naira notes

“They said they are yet to configure their ATMs, I do not know why that and I have brought attention to the penalty clause of N1 million per day, because they have five ATMs here, they have no reason for keeping this money.”

In response to this, Sterling Bank has waved transfer charges on transactions made by its customers, a move that will affect the profit of the company on electronic commissions.

It’s unsure however if investors of Sterling Bank will react to this, considering the company under Managing Director, Abubakar Suleiman, didn’t recommend the payment of any dividend for the Bank’s interim results for the year ended December 31, 2022.

Waving off transfer charges will reduce the firm’s earnings in the first quarter of 2023, and will affect Sterling Bank’s shareholders’ confidence in the Bank’s ability to grow their investment, considering no dividends was recommended in previous quarter.

A drop in investors’ confidence could trigger a sell off in the capital market, which in turn will cause losses to shareholders investment in Sterling Bank.

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