Yuletide Woes Deepen as Cash Scarcity Persists Despite CBN Warnings

Despite directives from the Central Bank of Nigeria (CBN) aimed at alleviating the cash scarcity gripping the country, many Nigerians continue to face significant difficulties accessing money. Investigations revealed widespread withdrawal limits at banks and ATMs across various states, contradicting assurances from the apex bank.

In a circular dated November 29, the CBN instructed banks to ensure adequate cash disbursement via ATMs and over-the-counter channels, warning of penalties for non-compliance. The directive, signed by acting directors Solaja Olayemi (Currency Operations) and Isa-Olatinwo Aisha (Branch Operations), encouraged Nigerians to report incidents of cash scarcity using provided phone numbers and email addresses.

However, citizens in major cities reported that these measures have failed to ease the cash crunch. In Abuja, some banks dispensed as little as ₦5,000 over the counter on Friday, with customers often directed to use ATMs, which were also constrained. A Zenith Bank branch in Delta State and a United Bank for Africa branch in Abuja set maximum withdrawals at ₦20,000, either through ATMs or across the counter.

Residents in Lagos, Akure, Imo, Abia, Kwara, Osun, and Oyo States shared similar experiences, with withdrawal limits ranging from ₦5,000 to ₦50,000 depending on the bank and location. In some areas, ATMs dispensed smaller amounts to non-customers, and Point-of-Sale (PoS) operators faced difficulty accessing cash, prompting them to turn to alternative sources like fuel station attendants and Bureau de Change operators.

A CBN insider alleged that some banks prioritize bulk cash payments for high-end customers, exacerbating the scarcity for ordinary Nigerians. Meanwhile, bankers have blamed the crisis on the naira redesign policy introduced under former CBN Governor Godwin Emefiele. The policy, they claimed, destroyed old notes without providing adequate new ones.

The National President of the Association of Mobile Money and Bank Agents in Nigeria, Fasasi Atanda, accused businesses like petrol stations, supermarkets, and traders of hoarding cash and selling it at inflated rates to cash dealers. He called for the engagement of PoS operators as official agents of cash distribution to mitigate the problem.