The lack of cash that is happening around the nation is quickly becoming a big cause for concernSome Nigerians complained about the exorbitant costs they had to pay for their withdrawalsThey expressed worries that the financial situation of many Nigerians will become much more precarious
Henzodaily.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The cash scarcity that is occurring in various parts of the country is rapidly becoming a major source of worry and misery for many Nigerians as the Yuletide season slowly approaches.
Photo Credit: PoS Operator
Source: Getty Images
According to Nigerian Tribune investigations, the problem, which has been ongoing for several months and doesn’t appear to be getting better, might make matters worse for people and businesses who have been struggling since the year began, particularly around the holiday season.
Some individuals for example, expressed dissatisfaction at the outrageously high fees associated with their withdrawals at Point of Sale (PoS) centers, which have climbed by 100 to 200 percent.
Read also
FG set to investigate as 100 airlines shut down in Nigeria
Adams Makinde, who resides in the state’s Alimosho Local Government Area near Agbado Area, claimed that he was forced to pay N200 on a N5,000 withdrawal at the PoS, which is located nearly across from the Alagbado Police Station.
“I was surprised because the charges used to be N100 on a N5,000 withdrawal,” he stated.
He voiced concerns that many Nigerians’ finances would be further strained if the issue is not resolved before the Christmas and New Year celebrations.
Lagos resident John Oladeinde, who just returned from Ondo State, claimed that he was charged N1,000 for withdrawing N20,000 while attending an event there.
“The fact remains that none of the PoS operators I saw was even ready to part with that sum of money at once. They were all complaining of cash shortages until I found one that eventually charged that amount. I had to do it because I needed the money badly. Interestingly, there are indications that things may get worse during the Yuletide,” he added.
Read also
Minimum wage: Top Nigerian governor says payments may be jeopardised in some states, gives reason
Yetunde Momoh, a PoS operator, ascribed the situation to insufficient cash at the ATMs and banking rooms.
She claims that PoS operators typically only have enough money to withdraw N20,000 from the banks in a single day. Others, she admitted, are typically purchased from gas stations and market vendors.
“These are unconventional means of sourcing these funds, hence the astronomical increase in the charges attached to the withdrawals. We are always told by our banks that there is no cash, and the little they have must be shared,” she added.
The majority of banks have changed their Automated Teller Machines (ATMs) to disburse between N5,000 and as little as N1,000 for clients using cards from rival banks.
Customers with cards from other banks, for example, are only allowed to withdraw N5,000 at a time from the Adeola Hopewell branch of Access Bank in Lagos; further withdrawals are subject to fees.
Read also
Access, Zenith, other banks impose new cash withdrawal limits as scarcity worsens
“I think it’s even better here. At the First Bank branch, very close to this place, that I visited before coming here, it’s N1,000 for customers holding another bank’s card,” stated a customer, who was holding a Zenith Bank debit card and had come to use the Access Bank ATM at Adeola Hopewell.
Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) responded to the crisis by warning that financial firms that impeded sufficient cash availability would face sanctions from the national bank.
Cardoso also alluded to the apex bank’s intentions to perform on-the-spot inspections of banks and penalize those that are found to be deficient during the Chartered Institute of Bankers of Nigeria’s (CIBN) annual Bankers’ Dinner in Lagos.
CBN speaks on circulation of old naira note
Henzodaily.ng reported that reports that the former series of N200, N500, and N1,000 banknotes will no longer be accepted as legal tender by December 31, 2024, have been refuted by the Central Bank of Nigeria.
Read also
Scarcity of cash fuels fear of exploitation by PoS agents as new withdrawal charges are implemented
The CBN stated in a statement issued Thursday by Sidi Hakama, acting director of corporate communications, that the Supreme Court of Nigeria’s ruling on Wednesday, November 29, 2023, to continue using old naira banknotes remains in effect indefinitely.
Alongside the new notes, the Supreme Court ruled that the previous series of N200, N500, and N1,000 banknotes would remain legal tender.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Henzodaily.ng