Banks Ration Cash as Naira Scarcity Persists, CBN Suspends Charges

Bank customers faced heightened frustration yesterday as Naira scarcity persisted, leading more banks to ration cash withdrawals. In response to the crisis, Point of Sale Operators (PoS) increased transaction fees by 100%, exacerbating the challenges faced by consumers.

In an effort to alleviate the situation, the Central Bank of Nigeria (CBN) suspended charges for cash withdrawals exceeding regulatory limits until April 30th next year. The suspension covers withdrawals above N500,000 for individuals and N3 million for corporate account holders.

Investigation revealed that bank branches in Lagos and Abuja experienced a shortage of cash, leading to reduced ATM withdrawals and over-the-counter limits. Some banks imposed a daily withdrawal limit of N50,000, while others further decreased the amount available through ATMs.

Customers faced long queues, reduced withdrawal limits, and operational challenges with ATMs. Additionally, some PoS operators in Nigeria hiked service charges, citing the need for business survival. Withdrawals of N5,000 now incur a service charge of N200, and N10,000 withdrawals attract a fee of N400.

Residents in the Federal Capital Territory, Abuja, expressed frustration over the escalating cash scarcity. Long queues, limited services in banking halls, and non-dispensing ATMs characterized the plight of bank customers, with many forced to make multiple visits to secure much-needed cash.

Banks adopted diverse strategies to cope with the cash crunch, including adjusting withdrawal limits, collaborating with PoS operators, and encouraging online transactions. While acknowledging the public’s frustration, an old-generation bank source assured that efforts were underway to address underlying issues and prevent future cash shortages in collaboration with the CBN.