Numerous states in Nigeria are grappling with a severe cash shortage, leaving Automated Teller Machines (ATMs) non-functional and banks restricting over-the-counter (OTC) cash withdrawals.
The Central Bank of Nigeria (CBN) attributes this financial strain to erratic cash flow and substantial pre-festivity withdrawals by depositors.
Affected states, including Ondo, Edo, Kwara, Delta, Plateau, Jigawa, and Osun, report growing frustrations among citizens trying to access cash.
Commercial and business activities are feeling the impact, especially in Plateau State, where banks are grappling with a shortage of cash, leading to disruptions in the local economy.
Reports indicate that banks are rationing cash over the counter, with ATMs programmed to dispense limited amounts, resulting in long queues.
Some ATMs are even deactivated due to insufficient cash. However, in areas like Katsina and other urban centers, business activities continue with minimal disruption.
The cash squeeze is particularly pronounced in states like Jigawa, where commercial banks are limiting bulk withdrawals to a maximum of N20,000, causing hardships for customers. Similar challenges are echoed in Ilorin, Kwara State, where commercial banks are failing to load ATMs adequately, forcing residents to contend with reduced withdrawal limits.
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Residents of Warri, Effurun, and surrounding areas in Delta State express concerns over the month-long cash squeeze, attributing it to banks’ failure to facilitate sufficient cash withdrawals. Point of Sale (PoS) operators in Warri reveal resorting to purchasing cash from traders due to the banks’ inability to provide adequate liquidity.
The situation is no different in Akure, Ondo State, where residents encounter difficulties accessing funds from commercial banks, and OTC withdrawals are capped at N20,000.
Osun State residents also grapple with increased withdrawal charges by PoS agents, adding to the financial woes.
Benin, Edo State, witnesses frustrated bank customers receiving only N10,000 over the counter. In Lagos State, banks initiate cash rationing as they face shortages of both old and new naira notes.
Customers in some areas of Lagos complain of limited cash withdrawals, both from ATMs and banking halls.
On the brighter side, states like Anambra, Ogun, Bayelsa, Niger, Akwa-Ibom, and Benue report banks attending to customers without imposing conditions or limitations on withdrawals.
The CBN responds to the cash crunch, attributing it to customers’ withdrawal patterns and a Supreme Court ruling.
A CBN official emphasizes the strain on the banking system during festive seasons, urging the public to adopt digital payment options and deposit more money to ease the situation.
The apex bank assures ongoing collaboration with commercial banks to ensure adequate cash circulation amid these challenging times.