News Update
With just a week to the Ondo State governorship election, residents are feeling the pinch of severe cash shortages in commercial banks across the state.
It was gathered that politicians from the major political parties had been making large withdrawals from banks and stockpiling cash to buy votes.
The Publication learnt that customers who wanted to withdraw money over the counter were given less than what they requested because of the unavailability of cash in commercial banks across the state.
A source in a new generation bank disclosed that the politicians had been withdrawing millions of naira from banks in the last one week.
They were alleged to be colluding with bank managers to make the withdrawal easy.
The source said, “In the past few weeks, there has been a high flow of cash in the state because politicians, particularly members of the ruling All Progressives Congress and the Peoples Democratic Party have colluded with bank managers to withdraw huge amounts of money daily. When the politicians ‘settle’ the bankers, they permit them to withdraw as much as they want. I can tell you authoritatively that the politicians are withdrawing millions of naira in cash from the banks, with the assistance of the managers.
“That is why we don’t have much cash to give customers. If you go to banks now, little cash is available in all their branches across the state. They are withdrawing money for their logistics in the campaigns and also keeping the money to buy votes on election day.”
Some bank customers, who spoke to our correspondent, said they had been finding it difficult to withdraw money across the counter.
While blaming politicians, the residents stated that the bankers informed them that they had little cash available in their branches.
A customer, who identified himself as Tunde, said he was disappointed to reach one of the commercial banks in Akure on Thursday only to be informed that he could not withdraw more than N10,000 from the counter.
He added that the bankers advised him to go out and withdraw from the Point-of-Sale machines outside.
“I was surprised that when I got to my bank on Thursday to withdraw N50,000, the man at the counter told me that cash was not available and that they couldn’t give me more than N2,000 cash. I was angry and I asked him the reason; they told me they didn’t get much cash from the CBN (Central Bank of Nigeria),” the customer lamented.
Another bank customer told newsmen that it had been a problem getting cash from the banks in Ondo State.
He said he was given the sum of N10,000 from his bank recently when he wanted to withdraw N30,000. Later, he was asked to go and use PoS for the remaining.
“I use one of the new generation banks. I got there to withdraw N30,000 cash to settle some bills but I was told I could only be given N10,000 as the highest I could withdraw from the counter. I asked the reason for this, but the only answer I got was little cash was available in the branch for customers,” he added.
A manager of one of the branches of a commercial bank, who spoke on condition of anonymity, confirmed the development.
He said little cash was left in the banks for customers to withdraw after politicians mopped up huge amounts of money from the banks.
The source said, “As a matter of fact, even before now, the amount of money in circulation is very low generally, not only in Ondo State, but there is a way we adequately manage the available money given to us. That is not known to the public. For instance, the CBN in Akure has mandated all the banks in its domain that you cannot withdraw (from the CBN) more than twice within two weeks, unlike before that we will go there Monday, Wednesday, and Friday to withdraw cash. But now, they are dealing with us two times a week.
“Then, on the withdrawal by politicians, it is not a lie. It is really happening. It is not limited to only one bank but virtually all the commercial banks in the state. There are some locations that per week, they mop up close to N300m, N200m. You can see that when that one is gone from a branch, there is no way you can serve an ordinary man who wants to withdraw N50,000, N100,000. It is very unfortunate.”
Another source alleged that the chieftains of all political parties approached banks for cash, but the ruling APC and the PDP were most responsible for the cash crisis in Ondo banks.
“They withdraw huge sums to keep for vote-buying on the election day,” he added.
Reacting, the Publicity Secretary of the PDP, Mr Kennedy Peretei, denied the allegations, saying the main opposition party did not have the money to buy votes.
The Director of Media and Publicity of the APC, Mr Steve Otaloro, also denied the allegation, saying it was to tarnish the image of the party and its candidate, Governor Lucky Aiyedatiwa.