CBN responds as scarcity of hit hits bank amid Christmas countdown

• The Central Bank of Nigeria (CBN) has assured banks of a steady flow of cash to ease shortages around the nation
• He asserted that the CBN is employing a number of tactics to address the ongoing cash shortages across the country
• To meet the growing demand, the regulator is ensuring that all deposit money banks have access to the cash supplies they require

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

To alleviate shortages across the country, the Central Bank of Nigeria (CBN) has promised banks a consistent flow of cash.

CBN shares alternative as cash scarcity hit banks amid Christmas countdown. Photo Credit: CBN, Contributor
Source: Getty Images

This is as cash scarcity hits Nigerian banks as customers lament not being able to get enough cash from their various financial institutions.

A survey carried out by Legit.ng found that banks are beginning to ration cash to their customers, cutting down on requested amount to N10,000 and N20,000.

Nkechi Peter said,

“I was at the bank today to get cash but I only managed to get N20,000. It was like a waste of my time because I could have gotten what I needed from the PoS.”

Chuks Ikenna said,

“Not been able to get money from the bank isn’t funny at all. Even the funds in the ATMs are now been limited too. ”

it is however suspected that the scarcity could be due to series of economic activities ongoing in preparation the Christmas season.

Cardoso addresses scarcity

Cardoso gave a speech at a press conference on Tuesday in Abuja after the 298th meeting of the Monetary Policy Committee (MPC).

He claimed that in order to solve the persistent cash shortages throughout the nation, the CBN is implementing a variety of strategies.

According to the governor of the CBN in a The Cable report, the regulator is making sure that all deposit money banks (DMBs) have access to the cash supplies they need to satisfy the rising demand.

“There is a lot that is going on, it is not a single area. It is multifaceted. With respect to cash specifically, we are ensuring that all the deposit money banks are getting all the cash that they require,” Cardoso said.“We are ensuring that is happening. We are having regular dialogue between the central bank branches and the cash money banks all over the place to ensure that it is also happening and that there are no gaps.“We are also doing spot checks, and a lot is coming out of those spot checks, and we are not relenting in applying the sanctions where we have to do so and I think some of that has actually been announced in the recent past, and of course, the cash buffers.“I believe that you should expect that there may be some ad hoc measures that will come during this Christmas season.”

Cardoso reaffirmed the CBN's dedication to correcting cash supply system distortions and making sure that no citizens are subjected to undue hardship.

The CBN ordered banks to give automated teller machines (ATMs) priority when it came to cash disbursement on November 15.

In order to guarantee effective and responsible cash distribution to the people and avoid giving mint banknotes to individuals peddling naira notes, the apex bank said that it has started conducting spot checks.

The CBN stated that in order to monitor and enforce responsible cash distribution and stop naira abuse, it will work with pertinent law enforcement authorities to step up spot checks and mystery shopping over the Yuletide season.

Nigerians complained on social media on November 13 about the dearth of cash in bank ATMs and the need to rely on point-of-sale (POS) operators.

CBN gives order on customers' cash deposit fee

Legit.ng reported that the CBN has extended the suspension of cash deposit processing fees for banks nationwide until March 31, 2025.

This was contained in a letter signed by the CBN's Director of Banking Supervision, Adetona Adedeji, and addressed to banks and financial institutions, including Access Bank, United Bank for Africa (UBA), Zenith Bank, and Guaranty Trust Bank (GTB), among others.

In the letter, the CBN reiterated that depositors will continue to enjoy fee-free deposits for cash deposits exceeding N500,000 for individuals and N3 million for corporate until March 2025, Punch reports.

Source: Legit.ng