Cash Scarcity Persists as CBN Vows to Sanction Banks

By Bayero Ade

Residents and small business owners in the Federal Capital Territory (FCT) have expressed frustration over the ongoing scarcity of naira notes, which has disrupted transactions and increased withdrawal charges at Point of Sale (PoS) terminals.

For several days, bank customers have struggled to access cash from Automated Teller Machines (ATMs) and PoS agents. This situation has led to a spike in PoS withdrawal charges, with operators citing limited cash availability.

Mary Isaac, a PoS operator in Mabushi, lamented the challenges of obtaining cash. “I spent over five hours in the bank on Friday just to get some cash. Now, the charges for transactions start from N200 and could increase in December,” she said, blaming the Central Bank of Nigeria (CBN) for not injecting enough cash into circulation.

Paul Uzor, a businessman, described the charges as unfair. “I was charged N500 to withdraw N10,000 from a PoS agent. This is unacceptable given the current economic hardship,” he said, urging the CBN to compel banks to provide sufficient cash at ATMs and banking halls.

Small business owners are feeling the pinch as well. Trader Isah Abba noted that cash shortages are crippling daily operations. “We can’t run our businesses like this. Both customers and traders don’t have enough cash, and PoS agents can’t meet the demand,” he said, appealing to the CBN to address the issue before the festive season.

CBN Issues Warning to Banks

In response, the CBN has warned deposit money banks (DMBs) of strict sanctions for failing to provide adequate cash. Speaking at the Chartered Institute of Bankers of Nigeria’s annual dinner in Lagos, CBN Governor Yemi Cardoso assured Nigerians that steps were being taken to resolve the scarcity.

“We are aware of the challenges Nigerians face with cash availability, particularly at ATMs. To address this, we will conduct spot checks on banks and impose penalties on those found underperforming,” he said.

Starting December 1, 2024, the CBN will activate dedicated channels for customers to report cash withdrawal difficulties. Guidelines for reporting issues will be widely circulated to ensure public awareness.

The CBN governor reiterated that financial institutions involved in malpractice or sabotage would face severe penalties. He also assured citizens of the CBN’s commitment to maintaining adequate cash flow, especially during high-demand periods like the festive season.

“The CBN will continue to ensure sufficient cash supply to meet the needs of Nigerians, and we expect full compliance from all financial stakeholders,” Mr. Cardoso added.