Cash crisis hits Lagos, Oyo, Osun, Ekiti, Ondo, Rivers, Kwara, Sokoto, Kaduna as anger spreads among banks' customers

Date: 2023-12-11

NIGERIANS have expressed anger over the return of cash crisis in some states of the federation as bank customers scavenged for the few notes available at the authomated teller machine (ATMs) and point of sales (POS) businesses.

Across Lagos State on Sunday, residents scavenged for cash from ATMs of banks as naira shortage spread.

Angry banks' customers railed against authorities and security officials at ATMs domiciled within premises of banks, in the state.There is widespread fear that the burgeoning currency scarcity may drag the country back to the first two months of the year when a currency policy of former President Muhammadu Buhari administration grounded cash transactions nationwide.

The Supreme Court of Nigeria shot down the policy and recently, indefinitely endorsed both old and new naira notes as legal tenders.

Disappointed banks' customers were either returning home after checking with several ATMs or simply resorting to patronising PoS operators, who have seized capitalised on the situation to hike their commission.When Nigerian Tribune checked with an operator, directly opposite a branch of United Bank of Africa (UBA) at Ikosi, Ketu, she was charging N300 for every N10,000.

Commission for N5,000 was N200, while every other amount below, was N100. The commission on N5,000 used to be N100.

While many disappointed residents were accusing bank officials of off-load-ing available cash to Pos operators allegedly working for them, for illicit gain, the PoS operators claimed they were getting their cash from businesses like betting shops and fuel stations, for a fee.

The Ikosi operator told Nigerian Tribune that N100,000 she got recently to remain in business, was procured for extra N3,000.

“When I asked my sister who was coming from Ibadan to bring some cash for me, she said naira notes were also scarce in Ibadan. I don't know what is going to happen if the scarcity continues and nobody is telling us why we can't get money from ATM. The story is same everywhere,” she disclosed.

Business, was, however seen to be good, as disappointed residents around the area flocked to her.

A bank official told the Nigerian Tribune that no cash was brought from the Central Bank of Nigeria (CBN) to his branch, all through last week, explaining that the cash being used for transactions was from the deposits made by customers.He gave the explanation when Nigerian Tribune asked why the bank's ATMs were saying, temporarily out of cash'.

After customers kept pestering him, he went inside and after about half an hour, cash flow was temporarily restored, to one of the four ATMs.

A PoS operator said dirty, practically unusable naira notes were being given by banks last week and had to return the ones given to her.

Similarly, some commercial banks in Ibadan, the Oyo State capital, have pegged the withdrawal limit for customers to N15,000 and N20,000.

This development resulted in an endless queues at the various ATM points in Ibadan.

Subsequently, Pos operators have increased their commission on withdrawals as customers now pay between N150 and N200 as charges on N5,000

Osun Residents in Osun are lamenting shortage of cash in many banks and among the Pos operators in the state. As a result of the development, majority of the people could not afford the exorbitant commission charged by PoS operators. For instance, a commssion of N200 was being charged each customer withdrawing N5,000 from the POS while charges for N10,000 was N400.

Ogun

Residents of Ogun State are also suffering from acute naira note in circulation as commercial banks were cash crunched with no specific reason for the development. Most banks ATMs were not dispensing enough cash for the people. The PoS operators are equally not having a good time in withdrawing cash from banks. Some banks are pegging their customers' withdrawal limit to N10,000, while Pos were charging N300 for N5,000 transaction.

Ondo

In Ondo State, Nigerian Tribune noted that bank customers had been spending hours in banks, especially at the banks' ATMs. Most of the bank customers lamented the challenge to access cash for transaction, saying some banks were only dispensing between N5,000 and N10,000 through the ATMs to non-customers and customers respectively.

Ekiti.

In Ekiti, especially Akure, Nigerian Tribune observed on Sunday that many of the ATM points at the popular bank road were not dispensing cash, while the few ones with long queues were only giving maximum of N10,000. At the the Pos outlets, a few of them with the notes increased their charge from the N20 to N50 per a thousand naira collected from them.

A member of staff of a bank in Ado-Ekiti, the state capital, who spoke on condition of anonymity, confirmed the scarcity of naira notes in the bank but expressed optimism that the issue would soon be resolved.

Sokoto

Findings by Nigerian Tribune indicated that the scarcity of cash had affected some of the PoS outlets as many of them had close their shops.

A resident, who spoke with Nigerian Tribune on the development said it took him two days to collect a sum of N50,000.

Kwara

Also in Kwara State, many residents are facing hardship in getting cash to transact business.

Residents of llorin, the state capital, who narrated their experiences to Nigerian Tribune, said the development, which started few weeks ago, had continued to get worse by the day.

Madam Omowunmi Yusuf, who operates provision store at Murtala Mohammed way, llorin, said commercial banks did not give more than N20,000 to a customer when the cash is available to be dispensed.

Rivers

Banks in Port Harcourt and environs in Rivers States, on Friday, ran out of cash and were turning down requests of customers, who had approached their offices to collect cash for their transactions.

At the Ikwerre road branch of one of the first generation banks, tellers were busy referring their customers to other nearer branches without any assurances to them that they would get paid at those referral branches.

Kaduna

Shortage of cash has also affected banks in Kaduna metropolis and its environs.

When the Nigerian Tribune visited most of the banks on Friday, it was discovered that customers were complaining over their inability to make withdrawals.

One of the customers, Ferie braim, a wanted interview that, to make withdrawal of N100,000 to enable me buy some Christmas clothes for my children but I can't. On getting to the counter, they told me I can only withdraw N40,000.”

However, the Central Bank of Nigeria (CBN), in a statement issued by its Corporate Communications Depart-ment, allayed the fears of Nigerians, assuring that there is adequate supply of the nation's currency for economic activities.

The News Agency of Nigeria (NAN) reports that CBN gave the assurance against the backdrop of complaints by some bank customers on scarcity of naira notes at the counters, ATMs, PoS and Bureaux de Change (BDCs).

Some officials of Deposit Money Banks (DMBs) also claimed that they were not getting adequate supply of cash from the CBN.

But the apex bank attributed the seeming currency scarcity to large volume of withdrawals of cash from var-ious CBN branches by DMBs, adding that panic withdraw-als by bank customers was also partly responsible for development.

According to the statement, “the attention of the CBN has been drawn to re-ports of alleged scarcity of cash at banks, ATMs, PoS and BDes In some maior cities across the country.

“Our findings revealed that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs.

“While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country.

“The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation,” it said.

The CBN also advised members of the public to guard against panic withdrawals as there is sufficient stock to facilitate economic activities, stressing that Nigerians should embrace alternative modes of payment, which would reduce pressure on using physical cash. Meanwhile, the apex bank also warned Nigerians to be-ware of fake naira banknotes in circulation. Its Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, gave the warning in a statement.

Sidi-Ali said that the counterfeit naira notes were mainly used for transactions in food markets and other commercial centres across major cities in the country, warning that any person found complicit in the circulation of the counterfeit currency notes would face severe sanctions.

Source

 

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