Cash Crunch Hits Several States Ahead Of Festivities, CBN Urges Calm
Many Nigerians are facing difficulties in accessing cash as some states are experiencing cash crunch, with Automated Teller Machines (ATMs) running out of money and banks limiting cash withdrawal over the counter (OTC) by depositors.
The Central Bank of Nigeria (CBN) attributed the situation to ‘uneven cash flow and huge withdrawal by depositors ahead of the festivities’.
Some of the states already hit by the cash crunch, with commercial and other business activities suffering some setbacks, include Ondo, Edo, Kwara, Delta, Plateau, Jigawa and Osun among others.
In Plateau State, commercial banks were experiencing acute scarcity of cash, a development that took a toll on business activities. Customers at Adeogun, Victoria Island, Lagos branches of banks complained that lenders were not meeting their cash needs.
Customers could only make N10, 000 cash withdrawals from ATMs and N20, 000 from the banking halls of banks’ branches.
But in Anambra, Ogun, Bayelsa, Niger, Akwa-Ibom and Benue states, banks attended to customers without conditions.
Reacting to the cash crunch, the CBN put the blame on the doorstep of customers’ withdrawal patterns and the Supreme Court ruling.
Speaking to The Nation, a CBN official from the Currency Operations Department, explained that the current situation was primarily driven by two key factors namely, the uneven cash flow dynamics and the uncertainty over old naira notes.
According to the official, “during the festive season, individuals and businesses tend to withdraw large sums of money for holiday expenses, placing a strain on the banking system’s ability to meet the surging demand for cash.”
He said those rushing to have access to cash were still unaware of the latest Supreme Court verdict that the old and new notes remain legal tender indefinitely.
The CBN official said the apex bank was working closely with commercial banks to ensure adequate cash circulation.
He urged the public to play their part by depositing more money and utilising digital payment options.
