Hardship: Nigerians groan as cash scarcity hits nation

News Update

..Reps order CBN to address cash scarcity

THE House of Representatives has expressed concern over the ongoing cash scarcity in commercial banks across the country.

This is as the green chamber of the National Assembly called on the Central Bank of Nigeria, CBN, to address the situation which has imposed significant hardship on Nigerians.

In a motion brought under Matters of Urgent Public Importance by Uguru Emmanuel, the House highlighted the severe economic and social implications of the cash scarcity, which has left many Nigerians unable to access funds even for basic needs.

According to Emmanuel, while economic growth relies heavily on consumer spending and business investment, the persistent cash shortage has become a major impediment to these activities.

He recalled that the CBN in its policy directive of December 21, 2022, set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities.

The lawmaker, however, observed that commercial banks have largely disregarded the policy, often limiting cash withdrawals to as little as N10,000 or nothing at all.

“Entrepreneurs and individuals are subjected to long queues, sometimes spending days at banks without success. This situation has particularly affected rural dwellers who rely on cash for transactions and lack access to digital payment systems,” he lamented.

He further raised alarm over the apparent connect between commercial banks and Point of Sale (POS) operators, who seem to have unlimited access to cash, often selling it at exorbitant rates.

“Where do POS operators get their cash from while banks remain dry?” he queried.

The lawmaker warned that unless the CBN takes immediate action, the situation could worsen, especially with the approach of the festive season, leaving businesses frustrated and citizens plunged into deeper economic hardship.

In its resolution, the House mandated the Committee on Banking Regulations to investigate the cash crunch in commercial banks and report back within one week.

The House directed the CBN to urgently address the cash scarcity if it is not responsible for the shortage.