ATMResidents in major Nigerian cities, including Lagos, Abuja, Kano, Katsina, Jigawa, and Adamawa, are expressing concerns over their inability to withdraw significant amounts of cash from banks, raising fears of a potential scarcity reminiscent of the naira swap. The cash shortage is reportedly impacting business transactions, particularly in local markets where cash transactions are prevalent, especially in the northern part of the country.
Daily Trust had earlier reported a resurgence of cash scarcity in Borno and Kano states, as the December 31 deadline for the use of old N200, N500, and N1,000 banknotes approaches. The Central Bank of Nigeria (CBN) responded, attributing the apparent scarcity to high-volume withdrawals by Deposit Money Banks (DMBs) and panic withdrawals by customers from Automated Teller Machines (ATMs).
The CBN assured the public of sufficient currency notes for economic activities, emphasizing that branches across the country are working to ensure the seamless circulation of cash. The apex bank reiterated that both old and new notes remain legal tender until December 31, urging Nigerians to continue transactions with them.
However, checks by reporters reveal a serious scarcity of the naira, affecting various sectors and regions. In markets across Kano, Katsina, Jigawa, Adamawa, Kaduna, and Taraba, the lack of cash is reportedly disrupting businesses. Farmers who have harvested goods are finding it challenging to sell as traders struggle to obtain cash for transactions.
In Nguru, Yobe State, grain merchants are reportedly offering rewards of up to N50,000 for anyone who brings in N1,000,000 cash. The scarcity is also affecting POS operators, who confirm a shortage of cash.
In Lagos, several banks’ ATMs in parts of Ikeja were observed to have run out of cash, leading people to rely on Point of Sale (PoS) agents. PoS operators complain about difficulties in withdrawing sufficient cash from banks.
While the CBN reassures the public of ample currency notes and the continued legality of both old and new notes, concerns persist among residents and businesses. The scarcity is raising questions about the availability of cash for everyday transactions and the potential impact on economic activities, especially in the run-up to the December 31 deadline for the use of old banknotes.
