As the countdown to Christmas ticks away, Nigerians are grappling with an acute cash shortage amid the ongoing naira crisis.
Despite warnings from the Central Bank of Nigeria (CBN) of potential sanctions against banks and Point-of-Sale (PoS) operators involved in alleged sabotage, the situation persists, leaving citizens cash-strapped just days before the festive season.
Reports reveal a series of developments contributing to the scarcity, including alleged collusion between banks and PoS operators, disrupting the seamless circulation of the Naira.
Withdrawal limits at banks have plummeted, with some customers encountering limits as low as N2,000, compelling many to turn to PoS operators for urgent cash needs, albeit at a premium.
Customers have expressed frustration and dismay, citing difficulties in purchasing essentials for Christmas celebrations due to inadequate access to cash.
Instances of failed electronic transactions further compound the challenges traders and consumers face in local markets and retail stores, delaying transactions and causing significant inconveniences.
Dr. Uju Ogunbunka, President of the Bank Customers Association of Nigeria (BCAN), cautioned against unnecessary spending, highlighting the continued scarcity despite promises from the CBN to address the issue.
He urged Nigerians to exercise prudence and frugality during this period of financial strain.
“The CBN has a mandate to promote a sound financial system, which includes producing and distributing cash across the country in a way that will be sufficient for all.
“That this is happening is very sad and sadder at a festive period when physical cash is a priority. The apex bank should not put us in further trouble and avoid stirring unnecessary suffering on the masses.
“If there is any issue, let them communicate appropriately so Nigerians can guard and prepare ahead. Nigerians have the right to know the truth.
“As much as we know that digital transactions can be substituted for cash, it cannot entirely play the role of physical cash. Even a merchant who accepts transfer for goods would still find himself in a position of needing cash,” he told ThisDay.
Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises, condemned the lingering scarcity as economic sabotage, urging the CBN to investigate and curb the disruption in cash distribution.
“Going by the CBN data, the currency in circulation is over N2.5 trillion, which is about what it was before the Naira redesign crisis.
“Hence, there is no basis for scarcity, except there is a deliberate act of sabotage. The CBN has a responsibility to investigate and identify those behind this,” he said.
Eben Joels, General Partner at Stransact, echoed concerns over the situation, emphasizing the apex bank’s need for a concerted effort to address the problem.
Joels added: “It does not help that there is still a significant amount of failed and unreversed payment transactions in the banking system. It adds to the demand for cash. The regulator must design a solution that works for all of us in the national interest.”
