As Christmas approaches, Nigerians face cash shortages with no resolution in sight for the prevailing naira crisis. The Central Bank of Nigeria (CBN) issued a warning on Thursday, threatening sanctions against banks and point-of-sale (PoS) operators involved in alleged sabotage. Despite this, the scarcity of cash has intensified, affecting withdrawals and transactions across the country.
The CBN, in a statement by its acting Director of Corporate Communications, Mrs. Sidi-Ali Hakama, cited collusion between banks and PoS operators, disrupting the circulation of the naira. The House of Representatives also urged the CBN to enhance monitoring and supervision of commercial banks due to the worsening scarcity.
The shortage, noticeable since late November and exacerbated in December, has led banks to reduce withdrawal limits, causing frustration among customers. Some reported withdrawal limits as low as N2,000, prompting reliance on PoS agents for cash.
Protests have erupted, with Nigerians expressing their dissatisfaction. At a Polaris Bank branch in Lagos, customers were angered by withdrawal limits, leading to a walkout. PoS operators, facing challenges accessing cash, have increased charges, compounding the difficulties faced by consumers.
The scarcity has forced consumers and traders to resort to electronic payments, causing delays and failed transactions. The Bank Customers Association of Nigeria (BCAN) cautioned against unnecessary spending, acknowledging no signs of a quick resolution. Dr. Uju Ogunbunka, BCAN President, emphasized the importance of physical cash, urging Nigerians to be patient and spend wisely.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises, labeled the situation economic sabotage. He called on the CBN to investigate and address the deliberate act causing the scarcity. Businesses, especially in distribution and transport sectors, have been disrupted, and some individuals exploit the situation by selling Naira notes at a premium.
Eben Joels, General Partner at Stransact, highlighted the need for the CBN to address failed payment transactions contributing to the demand for cash. Joels also called for measures to curb the spraying of Naira at celebrations, contributing to the scarcity.
As Christmas approaches, Nigerians grapple with uncertainty and economic challenges, hoping for a swift resolution to the naira crisis.
