Anastasia John E.
In a troubling continuation of cash scarcity, many Nigerians remain unable to access sufficient funds despite a recent directive from the Central Bank of Nigeria (CBN). This situation persists even after the CBN’s clear warning to Deposit Money Banks to prevent artificial cash shortages.
On November 29, the CBN issued a circular, co-signed by Acting Directors Solaja Olayemi (Currency Operations) and Isa-Olatinwo Aisha (Branch Operations), outlining measures to enhance cash availability. The circular mandated banks to ensure effective cash disbursement through Automated Teller Machines (ATMs) and over-the-counter services, threatening penalties for non-compliance. The CBN also encouraged customers facing difficulties to report their experiences, providing dedicated contact details for such complaints.
Yet, as of Friday, reports from several major cities indicate that many Nigerians are still grappling with significant challenges in obtaining cash. An anonymous resident of Abuja recounted that his bank allowed him to withdraw only N5,000 over the counter, suggesting that the limitation might stem from a shortage of cash rather than a bank-wide policy. “Most times, customers are advised to use the ATM, which dispenses fresh mints,” he noted.
In another instance, a United Bank for Africa customer in Abuja managed to withdraw N20,000 at the counter, while ATMs dispensed varying amounts, with some customers receiving N10,000. A Zenith Bank representative in Delta State confirmed that their branch had a maximum withdrawal limit of N20,000 for both over-the-counter and ATM transactions.
The cash crunch extended beyond the capital. In Akure, Ondo State, resident Oluwaseyi Oluwalade lamented his inability to withdraw cash from an ATM and the subsequent delay in receiving funds through a PoS operator. “I was asked to make a transfer, which I did, but I could only collect the cash the next day,” he said.
Similar frustrations echoed from other states. In Imo State, resident Onyekachi expressed exasperation at being limited to N20,000 withdrawals after lengthy waits. In Abia State, banks imposed withdrawal limits ranging from N5,000 to N20,000, while Kwara residents reported maximum withdrawals of N10,000 over the counter.
In Osun and Oyo states, the situation varied, with withdrawal limits fluctuating between N10,000 and N50,000 depending on the bank and location. A source at the CBN attributed the ongoing cash scarcity to some banks favoring high-end customers, assuring that the CBN would penalize those found in violation of the directive.
However, some bankers have pushed back against the CBN’s stance, claiming that the central bank’s cash allocations are insufficient. A Polaris Bank employee in Lagos pointed to the naira redesign policy implemented under former CBN Governor Godwin Emefiele, which he argued led to the destruction of old naira notes without adequate replacement, exacerbating the cash crisis.
Fasasi Atanda, the National President of the Association of Mobile Money and Bank Agents in Nigeria, also weighed in, accusing businesses that handle large cash volumes—such as petrol stations and supermarkets—of hoarding cash instead of depositing it in banks. He alleged that this practice has contributed significantly to the current cash scarcity, with cash dealers capitalizing on the situation by selling cash at inflated rates.
“There is cash commoditization,” Atanda stated. “Today, we have saboteurs who are dealing in the sale of cash. They sell cash in bulk; they have their sources, and they buy in bulk and sell. What you can’t get in the banks, you will get from cash dealers.”
He urged the CBN to consider engaging PoS operators as official agents for cash distribution to alleviate the ongoing crisis.
Credit to Punch
