CBN Governor Cardoso
Sequel to the Friday advice by Central Bank of Nigeria (CBN) Governor Olayemi Cardoso to bank customers to report any difficulties in withdrawing cash from bank branches or ATMs to the apex bank from today, CBN officials are commencing immediate spot checks on bank branches across the country.
Cardoso, who spoke during the 2024 annual bankers dinner in Lagos organised by the Chattered Institute of Bankers of Nigeria (CIBN), urged customers to make reports through designated phone numbers and email addresses for their respective states.
It was gathered yesterday in Abuja that the CBN has decided to go beyond waiting for formal complaints from customers.
Sources said officials of the apex bank would start visiting bank branches unannounced to ensure compliance with directives on cash distribution.
An official said any bank found hoarding cash during the inspection would be duly punished.
All branches of Deposit Money Banks (DMBs) are under instruction to release all available cash to customers to ease the cash crunch in the country.
Said one of the sources: “Teams from the bank will embark on on-the-spot checks from Sunday, December 1, 2024. Any bank found hoarding cash will be severely sanctioned.
“These inspections will intensify in the coming days and weeks to mitigate the current cash crunch that is crippling banking transactions.”
Nigerians have endured significant hardships over the last two years owing to persistent cash shortages.
On Friday, bank branches in Abuja restricted withdrawal over the counter toN20,000 and a maximum of N50,000 through Automated Teller Machines (ATMs) for customers using the bank’s own cards. Holders of other banks’ ATM cards were subjected to even lower withdrawal limits.
In contrast, Point of Sale (PoS) operators seem to have unrestricted access to cash and have capitalised on the crisis by increasing transaction charges exponentially. At Gosa Market along Airport Road in Abuja, most PoS operators now charge N2,000 for a N50,000 cash withdrawal.
Bank officials blamed the CBN for the scarcity, alleging insufficient cash allocations to branches.
An official at a leading bank, who spoke anonymously, said: “We are cash-strapped because the CBN has not provided enough cash. Our branch is only able to give N50,000 over the counter, which is barely enough to meet customer demands.”
The CBN, however, refuted the claims. Speaking to The Nation, a CBN official insisted that the apex bank has been fulfilling cash requests from commercial banks.
Cash crunch bites harder in Katsina
The cash crunch has affected business activities and transportation in Katsina State. So much so that even PoS operators hardly have sufficient cash to transact business.
Alhaji Abubakar Kaikai, a POS operator on Yahaya Madaki Way, Katsina, said only one bank in the city tries to meet its customers’ financial demands.
The rest, according to him, struggle to pay more than N10,000 per customer.
“Only when the banks receive large deposits do they dispense more. They all complain about poor cash receipts from the CBN,” he said.
He added: “My own bank has for the past four months failed to dispense cash to its customers.I am even considering closing my account with them.
“Most of these commercial banks often complain that the ration they get from the CBN is hardly enough to share to their other branches.
”CBN must increase allocations to the commercial banks and promptly sanction banks that fail to come for withdrawals from them regularly, because these banks always blame the CBN for poor dispensation of cash to their customers.”
Abia, Benue customers lament as banks starve them of cash
Bank customers in Abia State wonder why the banks deny them cash whenever they what to make withdrawal be it across the counter or through ATMs.
As at Friday, most bank Automated Teller Machines (ATM) dispensed between N10,000 and N40,000 to their customers while other bank customers were allowed to withdraw between N5,000 and N10,000.
While customers in Umuahia could withdraw a maximum of N10,000 across the counter, those in Aba, the commercial hub, could take N20,000 per transaction.
Some bank customers also accused bank staff of conniving with operators of Point of Sale (POS) to access all the cash in the vaults at the expense of bank customers.
Bank workers said the CBN was to blame because they (commercial banks) were not getting up to what they demanded.
Bank customers in Benue State say the problem has persisted for over two months now and are struggling to access cash at ATMs in Makurdi and surrounding areas.
They said in separate interviews that the banks ration cash ranging between N20000 and N50000 to customers.
Situation better in Kano, Enugu, Kwara
The situation is better in Kano with customers making withdrawals with relative ease across the Kano metropolis.
Whether in the banking halls or at the ATMs, customers have little to complain about cash withdrawal.
Residents of Enugu State weekend heaved sighs of relief following the return of cash in the ATMs.
The ATMs resumed dispensing cash following weeks of cash shortages, with customers withdrawing cash up to N10,000 per transaction.
Our correspondent who visited some ATM galleries reported a significant improvement with shorter queues at ATMs and consistent cash availability.
At some hotels and public places, customers were seen making cash withdrawals.
A customer told our correspondent: “This is a great relief for some of us. You can imagine that I had to pay N400 just to withdraw N5000 from a POS operator.
“But today, I withdrew cash from an ATM without any issues. This is a big relief. It’s encouraging to see ATMs dispensing cash again.
“But I hope this trend continues, especially as we prepare for the festive season when the demand for cash is usually higher.”
Although most of the ATMs in Ilorin, the Kwara State capital have been dispensing cash, there is always a ceiling to what each customer can withdraw in one day.
The amount dispensed by the machines varies from bank to bank.
In some banks, the ceiling is N20,000 per day. In some others, it is N40,000.
Banks, PoS operators trade blame in Anambra
Bank branches in Anambra State blame POS operators for taking all the cash loaded in the ATMs, while the POS operators in turn say the banks are to blame for the cash crunch.
The banks insist that they usually load enough money in the ATMs, which POS operators clear in no time.
The POS operators deny the accusation and claim that bank managers charge them huge sums to release enough to service their customers.
With the Christmas and New Year festivities around the corner, many Nigerians need a lot of cash for shopping. (The Nation)
