Cash Crunch Chaos: Nigerians Struggle as Banks Ignore CBN Orders Amid Yuletide Rush"

As the festive season approaches, Nigerians are grappling with worsening cash shortages, despite the Central Bank of Nigeria's (CBN) stern warnings to commercial banks against hoarding funds. Across the country, reports of limited withdrawals, long queues, and frustrated customers paint a grim picture of the nation's financial system during the Yuletide season.

CBN’s Stern Warning Falls on Deaf Ears

On November 29, the CBN issued a circular outlining measures to address cash shortages, instructing banks to ensure smooth cash disbursement through ATMs and over-the-counter channels. The directive, signed by Acting Directors Solaja Olayemi and Isa-Olatinwo Aisha, warned banks of penalties for non-compliance and encouraged customers to report difficulties accessing cash.

However, findings by Trafficng reveal that banks are yet to comply fully, with customers in major cities like Abuja, Lagos, and Akure reporting limited withdrawals and persistent cash scarcity.

Customers Speak Out: Frustration Across Nigeria

In Abuja, customers complained about being restricted to small withdrawal amounts. One bank allowed only ₦5,000 over the counter, while ATMs dispensed fresh mints but capped withdrawals at ₦20,000.

Similar challenges were reported in Akure, where a resident, Oluwaseyi Oluwalade, shared his ordeal of waiting an entire day to retrieve cash from a PoS operator after being unable to withdraw from ATMs.

“It’s frustrating to stand in line for hours and still leave with nothing. Even PoS operators are struggling to get cash from banks,” said Oluwalade.

In Lagos, withdrawal limits varied, with some banks allowing up to ₦50,000 over the counter. Still, many customers reported struggling to meet their financial needs.

Rising Costs and Accusations of Favoritism

In Ilorin, Kwara State, PoS operators have hiked their service charges by ₦50 due to the scarcity, while residents decry the withdrawal limits of ₦10,000 over the counter. Similarly, in Osun and Oyo states, limits range from ₦10,000 to ₦50,000 depending on the bank, further aggravating tensions.

A source within the CBN accused some banks of prioritizing high-net-worth customers, distributing bulk cash to them while neglecting ordinary citizens.

Banks Push Back: ‘Not Enough Cash from CBN’

Bank staff in Delta and Ogun states pointed fingers back at the CBN, accusing the apex bank of not supplying enough cash to meet demands. A Polaris Bank official linked the scarcity to the controversial naira redesign policy, which destroyed old notes without adequately replacing them with new ones.

“People no longer trust banks after last year’s debacle. They’re hoarding cash at home, worsening the problem,” the banker explained.

Saboteurs and Cash Dealers Blamed

Fasasi Atanda, President of the Association of Mobile Money and Bank Agents in Nigeria, blamed businesses like petrol stations, supermarkets, and restaurants for hoarding cash and selling it to dealers.

“There’s cash commoditization in Nigeria. Saboteurs are buying cash in bulk and selling it. This practice is at the root of the scarcity,” Atanda said.

He called on the CBN to engage PoS operators as official agents for cash distribution, arguing this would provide a more efficient solution to the crisis.

CBN Silent as Nigerians Await Relief

Efforts to reach the acting Director of Corporate Communications at the CBN, Hakama Sidi Ali, for comment were unsuccessful, leaving many Nigerians wondering if the apex bank can enforce its directives or provide a lasting solution to the crisis.

As the Yuletide season heightens the demand for cash, the question remains: Will the CBN act decisively to alleviate the cash crunch, or will Nigerians continue to bear the brunt of a dysfunctional system?