THE SUN
The return of cash scarcity in Nigeria has left many residents struggling to meet their financial needs as banks across the country ration withdrawals and Automated Teller Machines (ATMs) remain largely cashless.
As frustration mounts, Point of Sale (POS) operators have become the primary source of cash for millions of Nigerians but their services now come at a significantly higher cost.
Daily Sun’s investigation reveals that several banks in the Federal Capital Territory (FCT) have failed to load their ATMs, while over-the-counter (OTC) cash withdrawals are limited to paltry sums. Reports from other states mirror this situation, with residents lamenting a worsening cash crunch.
With banks unable to meet cash demands, POS operators have stepped in, although at a greater price. Many have increased their service charges by 50 to 100 per cent, citing the exorbitant costs of sourcing cash.
“I have at least 11 accounts in different banks, yet it is almost impossible to raise ₦200,000 right now. Some banks pay just ₦5,000 or ₦10,000 as their withdrawal limit. I can only give a maximum of ₦2,000 per customer,” a POS operator at Police Signpost, Lugbe lamented.
Another operator shared similar frustrations, revealing that he now sources cash from fuel station attendants after long waits at the bank yield insufficient amounts.
“After spending hours at the bank, you barely get ₦50,000. You do not expect me to still charge the same amount after such stress.”
A resident who simply gave her name as Ogechi said she is now more cautious of how she spends cash to avoid being stranded.
“ I started noticing the scarcity about three weeks ago. I am now very careful about how I spend my cash. I do not want to be caught unawares and suffer the same fate as the last Naira scarcity.
A staff of a leading bank in Nigeria at its Lugbe branch confirmed the situation, saying: “We only dispense ₦5,000 over the counter now because we placed an order for cash but we are yet to receive it. I can not guarantee that there will be more cash tomorrow or even next.”
Another banker added that ATM withdrawals are capped at ₦10,000, and OTC withdrawals at ₦20,000 for account holders. “Cash circulation is very low. It’s from the Central Bank of Nigeria (CBN),” the staffer explained.
In a bid to tackle the worsening scarcity, the CBN introduced dedicated phone numbers and email addresses for Nigerians to report difficulties in accessing cash.
A circular dated November 29, jointly signed by Acting Directors Solaja Olayemi (Currency Operations) and Isa-Olatinwo Aisha (Branch Operations), outlines measures aimed at improving cash availability.
CBN directed Deposit Money Banks (DMBs) to ensure efficient cash disbursement through both ATMs and OTC channels, warning of penalties for non-compliance.
Customers experiencing challenges are urged to report incidents with details such as the account name, bank name, transaction amount, and date.
The announcement follows earlier warnings from the apex bank, requiring banks to prioritize cash disbursements through ATMs and warning of penalties for non-compliance.
“Please refer to the various engagements and interventions from the Central Bank of Nigeria (CBN) on the above subject aimed at addressing efficient and optimal currency circulation in the economy,” CBN said.
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“As part of these ongoing efforts, we would like to draw your attention to the following directives and Guidelines:
“Deposit Money Banks (DMBs): DMBs are directed to ensure efficient cash disbursement to customers Over-the-Counter (OTC) and through ATMs as the CBN will intensify its oversight roles to enforce this directive and ensure compliance.
“General Public Reporting: Members of the public who are unable to obtain cash Over-the-Counter or through ATMs at DMBs, are encouraged to report these instances using the designated reporting channels and format provided below.
“This will assist CBN in addressing issues hindering the availability of cash and further improve currency circulation.”
“To make a report of a bank branch or ATM not dispensing cash, the CBN said affected customers are to provide the relevant details which include, account name/name of the DMB/amount /time and date of Incident(s) amongst others via the following dedicated channels.
“Phone Call: Designated phone number(s) of the CBN branch in the state where the incident(s) occurred,” the apex bank said.
“Email or send an email of the incident to the designated email address for the state in which the incident(s) occurred.”
