DAILY TRUST
There is rising complaints by bank customers and Point of Sale (POS) operators in some states across the country over alleged cash squeeze just as citizens try to meet their increasing demands for notes especially as yuletide shopping begins.
The states where these concerns are being raised include Bauchi, Borno, Kaduna, Kano, Kebbi, Taraba, as well as some satellite towns of the Federal Capital Territory (FCT).
The scarcity, which has lasted over a week in the reported states, is coming amidst data from the Central Bank of Nigeria (CBN), revealing that the total currency in circulation has reached N4.14 trillion, with N3.87 trillion of this amount currently outside the banking system.
The recent CBN data indicates that 93.34 per cent of the nation’s currency is in the hands of individuals and businesses, while only 6.66 per cent remains within the banking sector.
The gap between currency outside banks and the total currency in circulation suggests that Nigerians, especially those living in the northern part of the country, still heavily rely on cash for daily transactions, despite the rise of digital banking services.
Also, the CBN data revealed that currency in circulation in Nigeria has added N1.48 trillion or 55.8 per cent Year-on-Year (YoY) to N4.14 trillion as of August 2024, from N2.66 trillion in August 2023.
Cash squeeze pronounced in the North
Daily Trust findings revealed that the northern states are mostly affected by the current scarcity largely due to the onset of harvest and the fewer numbers of financial institutions in the rural areas of the North.
Findings by our reporters in Borno State indicate that some businessmen buying up grains on a large scale were said to be mopping up cash.
A POS operator, Hamza Abdullahi, said operators no longer get the required cash in banks, therefore, depend on traders and petrol stations.
Hamza attributed the scarcity to the harvest and yuletide period that is fast approaching.
He said: “Traders are busy buying the new harvests and to do this, they need cash because farmers in our rural areas do not use electronic payment channels. Some do not even have bank accounts”.
He said many people are also buying goats and other animals that are transported to the South ahead of Christmas, adding that these are largely cash transactions contributing to the scarcity.
He said for N50,000, POS operators now charge N1, 000 as against N500 previously.
READ THE FULL STORY IN DAILY TRUST
