Reps seek CBN’s intervention in addressing cash crunch

By Miracle Ogunde

Following the cash crunch facing Nigerians due to the inability of commercial banks to meet the cash needs of their customers, the House of Representatives has urged the Central Bank of Nigeria, CBN, to immediately prefer a lasting solution to the situation.

This is sequel to the adoption of a motion of urgent public importance moved by the member representing Abakiliki/Izzi Federal Constituency, Ebonyi State, Emmanuel Uguru, during plenary on Tuesday.

Uguru, stated that cash supply shortages in commercial banks have dire consequences on individuals and the nation’s economy.

He noted that on December 21, 2022, “The CBN by a policy contained in a circular number BSD/DIR/PUB/LAB/015/073 reviewed the cash withdrawal limits across all channels to N500,000 and N5m for individuals and corporate entities respectively, and which is not known to have been repealed.

According to the lawmaker, the House is concerned that the commercial banks in the country have jettisoned this policy as they can hardly give N50,000 to even current account holders.

“The House is disturbed that the cash crunch in commercial banks in the country has become a clog in the wheel of economic activities, as entrepreneurs are subjected to long queues and sometimes spend a whole day or two in the bank.

“This results in a loss of man-hours only to get N10,000 and in most cases go back home with nothing, subjecting this class of persons who have no access to POS that is mostly not applicable in some articles of trade especially in the rural areas to hopelessness. This causes untold hardship to this uninformed populace most of whom are rural dwellers we are representing.”

While urging the apex to rise up and address the issue, the lawmaker said, “Lives could even be lost for lack of cash to take the sick to hospital and to buy food with.”

He further argued that if the CBN continues to starve commercial banks of cash, “Especially as we approach the yuletide season, many people and even businesses will be frustrated and people will plunge into untold hardship.”

The House further directed its committee on banking regulations to investigate the matter and report back in one week.