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  • Business - Banking & Finance
  • Updated: November 15, 2023

More trouble in financial sector as cash scarcity hits banks

More trouble in financial sector as cash scarcity hits banks

The unavailability of cash has begun to resurface in some parts of the country.

Last week, reports surfaced that cash scarcity was noticed in Kano and Borno States.

AllNews.ng also observed the unavailability of cash in some parts of Lagos State, therefore reached out to some bank officials in Lagos who spoke on the issue.

Speaking, Mariam (name changed), a banker at GTBank, Alausa branch, Ikeja disclosed that the CBN had not brought cash to the branch in about seven days now, adding that N10,000 cash is the highest amount disbursed to customers over the counter so that the available cash would be enough to be shared among other customers.

She said, “The CBN has not brought cash to our branch since last Tuesday, therefore, the maximum cash we are paying to customers is N10,000 each, so the available cash would be enough for the day’s transaction."

On her part, a customer who identified herself as Fiyin in the bank expressed frustration, saying the CBN is responsible for hoarding the naira notes to punish the citizens for no reason.

She stated, “How will I come to withdraw N50,000 in the banking hall, and you will tell me the highest amount I can get is just N10,000? This is pure nonsense, and I am sure the CBN is the one responsible for holding back the naira.

“Well, I just hope we are not about to face another phase of naira scarcity because we are yet to get over the trauma of the one we experienced earlier this year."

Also speaking with another customer service representative who pleaded anonymity, she said banks are not responsible for hoarding the naira notes.

“Of course, if CBN makes cash available, we will definitely disburse cash to our customers, because holding back the naira notes won’t do us any good either,” he said.

However, the Central Bank has refuted the claims of cash scarcity in banks, automated teller machines, point of sales, and bureaux de change in various major cities nationwide.

It also assured of sufficient currency notes in circulation.

It said this in an official statement signed by the director of corporate communications, Isa AbdulMumin.

The statement reads in part, “Our findings revealed that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs.

Furthermore, the CBN assured the public, stating, “While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country.”

Also, AllNews.ng observed that some banks’ ATM galleries in some parts of Lagos like Ikeja, Oshodi, and Abule-Egba are not dispensing cash.

Meanwhile, the CBN had on Tuesday announced the extension of the life-span of the old naira notes, saying it will continue to remain a legal tender as against the deadline earlier set.

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