Commercial banks have imposed new cash withdrawal limits for over-the-counter withdrawals and in ATMsThe banks told their customers they could only withdraw N10,000 over the counter and N5,000 from the ATMs, where available.The development has led to PoS operators increasing their charges by as much as 100% owing to a nationwide cash crunch
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Findings by Henzodaily.ng show that Nigerian banks are rationing cash in over-the-counter withdrawals and ATMs.
The development comes amid worsening cash scarcity nationwide, leading to Point-of-Sale (PoS) operators exploiting the situation to hike their charges by as much as 100%.
Bank enforce over-the-counter withdrawal limits for customers
Credit: PIUS EKPEI UTOMI
Source: Getty Images
Banks impose N10,000 cash withdrawal limit
Visits to some banks in the Lagos metropolis show that the banks have imposed an over-the-counter withdrawal limit of N10,000 per transaction and ATM cash withdrawal of N5000.
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When asked the reason for the new limit, a Zenith Bank staff member in Marina, Lagos, who craved anonymity, said there is no cash and that the Central Bank of Nigeria (CBN) has yet to supply banks.
“We’re currently out of cash. So, we are rationing N10,000 per customer across the counter and N5,000 on ATMs,” she said.
Another bank staff member at First Bank in the Opebi area of Lagos echoed the same thing, saying that their bank’s vault is virtually empty as they have yet to get cash from CBN.
“Customers are not depositing cash for us to dispense to customers. So, you can only get N10,000 per transaction irrespective of your withdrawal requests,” he said anonymously.
PoS operators hike charges by 100%
Meanwhile, Point-of-Sale (PoS) operators have seized the opportunity to hike their charges by as much as 100%, citing the cash scarcity and the recently imposed EMTL charges as reasons.
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Scarcity of cash fuels fear of exploitation by PoS agents as new withdrawal charges are implemented
The operators disclosed that they find it challenging to access cash for transactions from banks and ATMs, as they buy primarily from market traders and filling station attendants.
Adedamola Adeleke, a PoS operator in the Iju-Ishaga area of Lagos, disclosed that the current cash scarcity has added to their challenges after fintech platforms began charging EMTL on customers’ accounts.
“Most operators are stranded because of lack of cash. The few with cash have no choice but to increase their charges as it is difficult getting cash from the banks,” he said.
Banks ignore CBN’s directive on cash availability
He disclosed that the operators have no choice but to hike charges as the cash scarcity has compounded their woes.
Recently, the CBN released phone numbers for Nigerians to report banks without cash in their ATMs, a move aimed at curbing cash scarcity.
However, two weeks after the apex bank’s action, many bank ATMs remained dry, and the banks imposed withdrawal limits.
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Cash crunch fuels rising misgivings against Nigeria’s money agents
PoS operators begin new charges
Henzodaily.ng earlier reported that PoS operators hiked their charges from Monday, December 2, 2024, due to the implementation of the Electronic Transfer levy imposed by fintech firms
The Nigerian government ordered the new charges against the fintech firms through the Federal Inland Revenue Service (FIRS).
The policy was scheduled to begin on September 9, 2024, but it was delayed following Nigerians’ outrage.
Proofread by Kola Muhammed, journalist and copyeditor at Henzodaily.ng
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Source: Henzodaily.ng