Bank Workers Hold CBN Responsible as Cash Shortage Deepens

The Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) has blamed the ongoing cash shortage in Nigeria on the Central Bank of Nigeria’s (CBN) failure to meet the cash demands of commercial banks.

ASSBIFI President Olusoji Oluwole expressed concern over the deepening scarcity, which has significantly affected banking operations and daily transactions, especially as the festive season approaches. Speaking to The PUNCH, he said, “This is something that has not ended since the redesign of the naira.”

Oluwole noted that banks rely primarily on two sources for cash: the CBN and retailers. However, the CBN has not been able to meet banks’ daily cash needs, while retailers, instead of returning cash to the banking system, often sell it for profit. This dynamic has worsened the availability of cash at Automated Teller Machines (ATMs) and bank counters.

He added that the issue has become more pronounced as demand for cash increases during the Christmas season, highlighting the challenges banks face in securing sufficient cash. Oluwole explained that banks collectively require at least N20 million daily to function effectively, with N8 million needed for ATMs and N4 million for over-the-counter transactions.

He stressed the importance of clear statistics on cash circulation, urging the CBN to improve transparency and efficiency. “For us, the solution is for the CBN to have clear statistics so that they understand where the cash is, how it’s circulating, and where it’s needed,” he said.

Oluwole also called for a transition toward a cashless economy, citing its advantages in cost, safety, and efficiency. “An economy that operates in a cashless manner does better than a cash-dependent economy. This is proven worldwide,” he remarked.

Additionally, Oluwole urged authorities to address the issue of illegal currency trading. He emphasized that selling cash at a profit is unacceptable and called for investigations into reports of point-of-sale operators buying cash from fuel stations and supermarkets.

“No bank wants to starve its customers of cash. It doesn’t make sense for any bank to withhold cash, but you can only give what you have,” he added.

Meanwhile, Emmanuel Onwubiko, National Coordinator of the Human Rights Writers Association of Nigeria, criticized the CBN and its Governor, Olayemi Cardoso, for their handling of monetary policy, which he said has plunged millions into hardship. Onwubiko highlighted how the cash scarcity has particularly hurt rural communities, small businesses, and daily wage earners, pushing many into deeper poverty.

He pointed out that long bank and ATM queues have become a daily reality, with depositors unable to access their funds despite having sufficient balances. Onwubiko called for President Bola Tinubu’s urgent intervention to stabilize the banking system and prevent further economic collapse.

The Human Rights Writers Association also called on the National Assembly to summon the CBN Governor for accountability and oversight, stressing the need for swift action to resolve the crisis.