Nigerians Groan As Cash Scarcity Compounds Hardship

Story/Photo Credit: vanguardngr.com

A resurgence of widespread and intense cash rationing by banks have compounded the severe economic challenges confronting Nigerians driven by high prices of goods and services.

The House of Representatives, however, asked the Central Bank of Nigeria, CBN, to urgently address the situation which has disrupted economic activities, causing significant hardship to citizens.

Vanguard’s investigation revealed cash withdrawal limits ranging from N5,000 to N10,000 in most bank branches for over-the-counter and automated teller machine (ATM) transactions.

Bank customers who spoke to Vanguard across the country narrated bitter experiences in withdrawing cash from the banks.

Bank officials, who spoke to Vanguard, attributed the development to limited cash supply from the Central Bank of Nigeria, CBN, and a decline in cash deposits by customers.

This development is in spite of a recent warning by the Central Bank of Nigeria, CBN, which directed banks to ensure efficient cash disbursement to customers Over-the-Counter (OTC) and through ATMs as the CBN will intensify its oversight roles to enforce this directive and ensure compliance.

Additionally, the CBN, in a circular signed by the CBN’s acting Director of Currency Operations, Solaja Olayemi, and its acting Director of Branch Operations, Isa-Olatinwo Aisha, urged members of the public who are unable to obtain cash Over-the-Counter or through ATMs at DMBs, to report such instances using the designated reporting channels and format provided, the CBN had also promised.

Lagos

Many banks visited in Lagos yesterday dispensed limited amounts of cash, with some ATMs not functioning at all.

Vanguard’s visit to a new generation bank at Ikotun revealed cash withdrawal limit of N10,000 from the ATM and N10,000 for across the counter.

Other bank customers were allowed a withdrawal limit of N20,000 across the counter and N20,000 limit for ATM. Non-customers of the bank could access only N5,000.

Customers of a new generation bank were able to withdraw up to N10,000 across the counter and N20,000 from the ATM.

Vanguard also observed long queues at the ATM points of some of the bank reflecting the severe difficulty of accessing cash.

At a new generation bank on 2nd Avenue in Festac, customers were only able to withdraw N10,000 over the counter, while the ATM was not dispensing cash.

When Vanguard visited a new generation bank at Festac, only N20,000 was given to customers over the counter, while the ATM had no cash. The bank was deserted.

Our reporter observed a customer leaving the bank upon hearing he can only withdraw N20,000.

However, for a new generation bank on 200 Road, Festac town, there was no money available over the counter.

Meanwhile, their customers could withdraw N40,000 at N20,000 per withdrawal from the ATM, while non-customers can withdraw N20,000 at N10,000 per withdrawal.

Another bank on 200 Road had no money in their ATM, while over-the-counter withdrawals were limited to N20,000.

Another new generation bank at 511 Road paid bank customers N100,000 over the counter, while non-customers could get N25,000 at N5,000 per withdrawal. However, as at 12:37 pm, the ATM had stopped dispensing.

A new generation bank at Mile 12 gave customers N40,000 over the counter, but limited non-customers to N10,000. Sterling Bank in Ketu offered N20,000 over the counter and N50,000 through ATMs.

An old-generation bank limited cash withdrawals to N10,000 over the counter, but offered up to N50,000 for withdrawals of N1,000 or more.

Some customers in the banking hall who requested between N30,000 and N50,000 in their withdrawal slips were asked to complete another slip with a lower cash withdrawal request in line with the limit of the bank which ranges between N10,000 to N20,000.

Most of the banks showed cash limitation of N10,000.

Customers of the banks were allowed to withdraw the N10,000 at once but non-customers withdraw N5,000 twice.

Lamenting, Mrs. Yetunde Usman, a bank customer said: “I don’t have an ATM card because the ATM terminals in these banks have swallowed three of my cards this year. As a result, I stopped applying for cards and I only do cash withdrawals from my bank.”