Banks Hoard Cash as Yuletide Approaches, Leaving Anambra Residents in a Bind

As the festive season draws near, residents of Anambra State are expressing frustration over the increasing scarcity of cash at banks. Many customers, who visit banking halls daily, report being denied withdrawals under the claim of insufficient cash availability.

This development has fueled a surge in the activities of Point of Sale (POS) operators, who now obtain cash from banks and sell it to customers for a commission.

A visit to several banks in Awka revealed a pattern of cash rationing. At a new-generation bank in the city, a staff member informed a customer that withdrawals were limited to N100,000 due to a purported shortage of cash. Another customer, who requested only N20,000, was redirected to an ATM that was not dispensing cash.

“Banks are refusing to release cash. They direct customers to ATMs that they know are empty,” one woman lamented. “I don’t want to pay N600 to withdraw N20,000 at a POS terminal. This is unfair, especially when people deposit bulk cash into these banks daily.”

The issue has also been felt in other parts of the state, including Nnewi. Comrade Jude Udegbe, Chairman of the Anambra State Motorcycle Transport Welfare Association, criticized the trend.

“Banks are hoarding cash just like they did last year, forcing customers to rely on POS operators. These operators are exploiting the situation, charging high commissions. The government must intervene to alleviate the hardship,” Udegbe said.

Insiders allege collusion between banks and POS operators, suggesting that bulk cash is often reserved for operators in exchange for agreed commissions. A trader at Eke Awka market, Mr. Jerome Obaji, corroborated this claim.

“Some POS operators work closely with bank staff. How else do they get large amounts of cash daily? Meanwhile, regular customers are told there’s no cash available,” Obaji stated.

Despite the challenges, POS operations have become a significant source of employment for many unemployed youths in Anambra. At Aroma Junction in Awka alone, over 100 young women operate POS businesses.

Comrade Joe Ifedigbo, a businessman, noted that POS services offer convenience and economic opportunities. “These operators are providing an essential service and creating jobs. Without them, the situation would be worse,” he said.

A POS operator shared insights into the profitability of the business. “The amount of profit depends on how much cash you can access. On a good day, I make up to N5,000. Bulk transfers also provide an additional income stream through commissions,” she explained.