• Banks impose withdrawal limits amid festive rush
• PoS operators, cash dealers profit as scarcity persists
By Tayo Busayo, Abuja
DAILY COURIER - As the festive season approaches, cash scarcity continues to plague Nigerians despite the Central Bank of Nigeria’s (CBN) recent directives to curb the crisis. Findings by Sunday PUNCH reveal that many banks across the country are still limiting withdrawals, forcing Nigerians to resort to alternative, often exploitative, channels to access cash.
In a circular dated November 29, 2024, signed by Acting Directors Solaja Olayemi (Currency Operations) and Isa-Olatinwo Aisha (Branch Operations), the CBN warned banks against hoarding cash and mandated efficient disbursements through ATMs and over-the-counter transactions. Customers were also encouraged to report non-compliance.
However, complaints from major cities suggest that the scarcity persists. In Abuja, customers reported daily withdrawal limits of as low as ₦5,000 over the counter in some banks. ATMs often dispense fresh mint notes but remain inconsistent in availability. A United Bank for Africa (UBA) customer in Abuja said withdrawals were capped at ₦20,000 for customers and ₦10,000 for non-customers.
A Zenith Bank official in Delta State confirmed similar caps, while in Lagos, some banks allowed over-the-counter withdrawals of ₦30,000 but restricted ATM withdrawals to ₦20,000.
The situation is particularly dire in Akure, Ondo State, where customers struggle to find cash even at Point of Sale (PoS) operators. Oluwaseyi Oluwalade, an Akure resident, recounted a two-day delay in receiving cash from a PoS operator after initiating a transfer.
In Imo and Abia states, withdrawal limits range from ₦5,000 to ₦20,000, frustrating residents. Meanwhile, in Kwara, Ilorin residents reported banks paying as little as ₦10,000 over the counter, with increased PoS charges compounding the situation.
The National President of the Association of Mobile Money and Bank Agents in Nigeria, Fasasi Atanda, attributed the scarcity to businesses hoarding cash and selling it to cash dealers at inflated rates.
“There is cash commoditisation,” Atanda said. “Supermarkets, petrol stations, and other large cash handlers are selling cash instead of depositing it in banks.”
Mint sellers at Wuse Market in Abuja confirmed that banks supply them cash at a premium. Yusuf, a dealer, revealed he pays ₦4,000 to ₦5,000 for ₦50,000 in mint and resells it for ₦7,000 to ₦8,000.
A source at the CBN alleged that some banks prioritize high-net-worth customers, giving them bulk cash at the expense of ordinary Nigerians. “We will penalize erring banks,” the source assured.
However, bank officials claim that limited cash supply from the CBN is the root cause. A Polaris Bank staff member in Lagos linked the scarcity to the naira redesign policy introduced under former CBN Governor Godwin Emefiele.
Amid growing frustration, Nigerians are calling on the CBN to enforce its directives and ease the financial strain. Many suggest engaging PoS operators as official cash distribution agents to alleviate the hardship.
As the festive season approaches, the urgency to resolve the cash crisis intensifies. While the CBN has vowed to act, millions of Nigerians are left struggling to access their money, raising questions about the efficacy of the banking system during one of the year’s busiest periods.
