Cash Crunch in Abuja: ATMs Struggle to Dispense Naira Ahead of Christmas

Parts of the Federal Capital Territory (FCT) are grappling with a shortage of Naira just as the festive season approaches. The AYA area in Abuja witnessed disruptions, with at least seven commercial banks unable to dispense cash through their ATMs on Thursday.

Upon visiting the affected ATMs on Thursday evening, it was observed that the inability to withdraw cash has persisted for about a week. This development has left residents and bank customers frustrated as they prepare for the holiday season.

Interestingly, Point of Sales (POS) operators were seen in abundance in front of these banks, seizing the opportunity to conduct brisk business. Samuel, one of the POS operators, expressed his dismay, highlighting that the ATMs have not been dispensing cash as expected. He pointed out that cash availability is now limited to specific hours of the day.

“Since we entered December, these ATMs have not been dispensing as much. There is a Naira scarcity, and most likely it may be because we are approaching December, but only CBN can explain this new scarcity,” Samuel lamented.

This scarcity comes amidst the backdrop of the Central Bank of Nigeria’s directive that both the old and redesigned Naira notes remain legal tender. The Supreme Court, in a recent judgment, granted the federal government’s request to lift the December 31 extension deadline for the usage of N200, N500, and N1,000 notes.

In response to the judgment, the CBN clarified, stating, “To avoid doubt, the Supreme Court ordered that the old versions of N200, N500, and N1000 banknotes, alongside the redesigned versions, shall continue to be legal tender. Accordingly, in line with Section 20(5) of the CBN Act 2007, all banknotes issued by the Central Bank of Nigeria will remain legal tender indefinitely.” The apex bank’s statement aims to reassure the public amidst the current Naira scarcity.