The cash crunch that hit most banks in the country since Monday, January 30, 2023 continued yesterday as banks said they have not been getting enough cash from the Central Bank of Nigeria (CBN) to disburse to their customers.
Consequently, the Association Senior Staff of Banks Insurance and Financial Institutions (ASSBIFI) has challenged the Central Bank of Nigeria (CBN) to make public how much new Naira notes it had pushed into circulation, even as it expressed worry over the scarcity of new and old Naira notes in the country.
The president of ASSBIFI, Comrade Olusoji Oluwole, lamented that Nigerians are going through excruciating difficulties in order to feed and do business transactions because of the cash crunch brought by the policy. He called for a review of the policy in order to save Nigerians from further hardship.
Oluwole urged the CBN to publicly declare how much of the new Naira notes has been printed and distributed so far to banks for disbursement compared with what has been withdrawn from the public.
The ASSBIFI helmsman disclosed that its independent study showed that the volume of the new notes in circulation is highly insufficient and most of the Automated Teller Machines (ATMs) have no new notes to dispense, while some of those dispensing are still paying out old notes.
"Nigerians have been reduced to moving from one ATM point to another in search of new Naira notes that should have been abundantly supplied. Pressure has been on bank workers who interface with the angry public in the process of depositing old or withdrawing the new notes, and we request urgent actions by the CBN to avoid attacks and other unruly actions against these bank workers as their safety and health are of great concern to the union to us in ASSBIFI," Oluwole said.
A banker who craved anonymity said addressing the scarcity of cash is something that only the CBN can do, even as he said there ought to be discussions between the CBN and the committee of bank chief executives on how to address the ongoing scenario.
"The CBN should know what our requirements are, they should know what we require and how much will serve our customers. A bank that has over 300 branches and the CBN is giving them only N350 million; that means N1 million per branch. How do we deal with this?
"We can't even pay with the old note and we don't have the new notes. The new trend is that, because banks don't want to get in trouble, they are paying customers in N100 and N20 notes. And that is because they don't want more problems. Customers are protesting that they want their money and since the lower denominations are still legal tender, banks are paying with them.
"There is a shortage of cash everywhere. We did not envisage what is happening now. The only place where a solution can come is from CBN. The CBN should release more cash, and at the CEO level, there should be engagements with CBN on this," the banker stated.
The president, Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, has attributed the current scarcity of old/new Naira notes coupled with fuel scarcity and hike in pump prices to systemic failure and corruption.
Speaking in an exclusive interview with LEADERSHIP in Lagos yesterday, Wabba said: "Millions of man-hours are lost with many people now rendered unproductive by scarcity of old, new Naira notes while people now spend hours on queue for fuel in a society blessed with abundant human and natural resources.
"The unbanked people living in rural areas and marketers are feeling the pain more as they don't have any other means of survival. There are no old and new maira notes for people to transact business. Why the haste in implementation of Naira redesign which could have been allowed to flow side by side for months before old notes are eventually mopped up."
Nationwide, bank tellers have been turning customers away as they say there is no cash to pay them, and queues at the few Automated Teller Machines (ATMs) that are paying cash are growing longer.
Ngozi, a trader who sells electrical materials alongside her husband in Lagos said she is already running low on cash and does not know if she will be able to open her shop by the end of the week if the cash crunch continues.
"All the people that have been patronising my shop have been doing transfers which even misbehaves. I went to the bank to collect cash so that we can have money to run around and I was told that I can only get N2000. I have money in the bank and I can't take it. It is very frustrating," she said.
A roadside fruit seller said all her regular customers have been paying her with transfers and the few who are paying cash have paid with the new notes.
"All the transfers that my customers did yesterday, I am yet to get the alert but since they are my regulars, I am not so worried. This scarcity of cash has to end soon", she said.
A business woman in Lagos, Mrs Kome Enobong, told LEADERSHIP that she left her home as early as 7am to her bank to withdraw some of the funds in her account, only to be told that there is no money to give to her.
"I have visited three Union Bank branches, but I couldn't withdraw my money. I was told that there is no money in the bank to give to me. This is my money that I have worked for. The ATMs are not dispensing cash either. How am I going to feed my children, because right now, I don't even have money on me?," Mrs Enobong lamented.
A teacher, Mr James Niyi who also shared his ordeal with LEADERSHIP, said, "I cannot withdraw my own hard earned money from my bank. I had to use POS, where I spent N1,000 to get N10,000. This is really pathetic," Niyi said, calling on CBN to intervene.
A POS operator, Mr Okanlawon noted that, they have not been able to do business as usual as there is no cash to give to customers who continue to throng his shop in search of cash. "My customers have been begging me for cash but what can I do if I don't have the cash to give them? If this continues, I hope that people don't take to the streets to riot over scarcity of cash."
As of yesterday, some POS operators were charging N1,500 for N10,000 withdrawals while some were charging N1,000.
Mrs Akin, a civil servant, said after lots of begging and shouting in the bank, she was able to get N5,000, paid in N5 notes.
LEADERSHIP had, on Tuesday, reported that business activities were paralysed in Lagos State as bank customers queued for long hours at Automated Teller Machine (ATM) terminals across Lagos State to withdraw cash.
Similarly, electronic banking transfer through the mobile app, or USSD code, as well as Point of Sales (POS) machines network were extremely poor as people could not pay for services rendered through the electronic banking system.
This halted business activities as there was no physical cash to settle for services offered, while the electronic transfers were held up from network downtime.
Those who had purchased goods from supermarkets and motorists who wanted to buy fuel at filling stations with the hope of using their ATM cards for payment were disappointed.
Following the extension of the deadline for the depositing of old Naira notes by the CBN for 17 days, Nigerians besieged ATMs in search of cash, starting from Monday till yesterday, with many unable to get cash in the end, while those who got were limited to only one withdrawal of N20,000 maximum from few ATMs, as banks which had the new notes began to ration it.
LEADERSHIP findings revealed that maximum bank withdrawal from the few ATMs paying was limited to N20,000 while other banks withdrawal limit was put at N10,000.
Many ATMs visited by LEADERSHIP in major parts of Lagos were crowded with bank customers seeking to make withdrawals.
Kaduna bank customers have continued struggling to get the redesigned naira notes at ATM points as POS operators charge high on withdrawals.
Our correspondent who visited FCMB, First Bank and Keystone Bank branches in Sabon Tasha in the Kaduna metropolis observed that customers were not finding it easy to withdraw money.
One of FCMB customers who identified himself as Victor Samaila said: " I was here for a long time but when it was my turn I withdrew only N20,000. The money is new naira notes, not old ones. Some ATMs are not dispensing money and, as you can see, people are much here"
At First Bank Sabon Tasha, one of the customers, Vero Adamu, said:"I went to two POS points and they told me they don't have money to give customers, and as I arrived here the ATM was filled up with customers waiting to withdraw. I have spent an hour here so far, waiting for my turn."
The POS operators are not helping the situation as they charge up to N1000 to pay out N10,000, which is 10 times the usual price.
One of the operators told our Correspondent that they are finding it difficult to get cash from the banks and called for an extension of the date to three months.
FCT Residents Decry Scarcity Of New Naira Notes
Residents of the Federal Capital Territory (FCT) have lamented the non-availability of new currency notes in most of the ATM in the territory since this week.
This development has made residents resort to POS operators who are now making brisk business by charging their customers beyond the usual charges.
It was observed that the POS operators, who say they go the extra mile to get the new naira notes, have concluded to charge N100 for N1000 withdrawal and N500 for N5000, and they do not give more than N5,000 to a customer per transaction in a day.
A POS operator, Ms. Peace Nkem, explained that they decided to charge that much because of the scarcity of the new naira notes in Abuja, adding that they have to buy the notes from people who have access to getting the money without stress.
"To make matters worse, there is no money in ATMs in Abuja; even the old notes are very difficult to get. So, we charge more when we eventually get the new notes because we are charged N300 for N5000, depending on how much you want, and they do not give us more than N20,000 per transaction," she said.
When LEADERSHIP visited some ATM points in the territory, the machines were found to be empty of cash.
Security personnel in one of the branches of Zenith bank in the city centre, Mr. Lazarus, explained that last Friday, the bank got a signal from the headquarters that they should move all the old naira notes to Central Bank, for them to replace them with new naira notes, but nothing has been done.
"When we got the signal to move the old naira notes to CBN, we were happy that the new notes would be brought back for circulation But to our disappointment, it has been one week since we moved all the old naira notes to CBN and no money has been sent to us; that is why there is no money in all our ATMs," he said.
Most ATMs, POS Kiosks Have No Cash To Disburse In Rivers
In Port Harcourt, the Rivers State capital, the majority of the ATMs are not dispensing money.
LEADERSHIP gathered that the few that are functional are dispensing old naira notes, with long queues of customers waiting for their turns.
There was no cash to give to customers at over 20 Point of Sale (POS) kiosks visited by our Correspondent within Port Harcourt metropolis.
One of the POS operators, who identified himself as Joseph, said he spent the whole of Tuesday in the bank to withdraw N300,000 only to be given only N50,000.
Another POS operator, who gave her name as Madam Jane, said after trying unsuccessfully on Tuesday to withdraw money from her bank, she has decided to close her kiosk pending when the scarcity of naira notes will be over.
Speaking with LEADERSHIP, an official of a new generation bank, who pleaded for anonymity, confirmed that banks in Port Harcourt metropolis were short of both old and new naira notes.
He said to cushion the effect of the scarcity, banks have resorted to not paying all cash requested by customers.
He said: "We have limited cash at our disposal and that is the same situation in almost all the banks in Port Harcourt. So, we resorted to paying 20 percent of whatever a customer requested. If a customer requests for N10,000, we end up giving such customer only N2,000."
On how to find a lasting solution to the scarcity, the bank official said only the banks' chief executive officers and the CBN can find a lasting solution to the issue.
A check by our correspondent showed that most old and new generation banks in Ado Ekiti, Ekiti State capital, were besieged by customers who came to get the new notes.
Speaking with LEADERSHIP at one of the old generation banks, Mr Oluwole Afolabi said he has been at the bank's ATM since around 8am but could get the money due to the huge number of customers on the queue.
"Apart from the fact that there is no sufficient money for everyone in the queue, one cannot get as much cash as desired. I will have to visit POS for cash".
Another bank customer, Francis Ajayi said he had to go to the bank counter when he waited endlessly on ATMs only to be paid with lower currencies like N100, N50 and even N10. Few new N500 notes were added.
"I later went to POS operators to receive new naira notes. It is now a brisk business for them as I had to cough out N100 per new N1000 note, N150 per two new N500 notes and N50 per old N1000 note while transfer per N1000 which used to be N20 is now N30".
A first generation bank official, who spoke on the condition of anonymity, appealed to the people to bear with them at the trying period, saying though the new notes at their disposal may not be sufficient to go round once, they are doing their best to ensure that a good number of people access the available new naira notes.
On the lower currencies being given out by the banks on the counter, he said it was a directive from the apex bank, CBN.
Investigation by our correspondent revealed that most of the POS or money agents visited had neither the old notes or the new ones to dispense to their customers.
A money agent or POS operator Chishak operating along Bukuru low cost junction told our correspondent that he spent the whole day yesterday in the bank to get only N20,000 which is grossly inadequate for his operation .
Kwara, Kogi PoS Operators Peg Withdrawal At N5,000, Charge 300% Commission
Point of Sales (POS) operators in Ilorin, Kwara State, have hiked their commission by 300 percent.
The astronomical increase in POS operators' commission, LEADERSHIP gathered, is due to scarcity of cash, both old and new, in circulation.
LEADERSHIP survey showed that most POS operators did not have both the new and old naira notes in stock.
The only few POS operators with cash were dispensing the old naira notes and pegged the minimum withdrawal to N5,000 with N400 commission as against N100 hitherto charged.
Also, at the few ATM centres that dispensed new notes in Ilorin, there were long queues of people who wanted to withdraw money.
LEADERSHIP checks showed that there were heavy human congestions with long winding queues at ATM's in Umuahia, the Abia State capital, all day long.
Inquiries from Ohafia, the third largest town in the state, and Aba the commercial nerve centre, indicated that the situation was not easier there.
Even when they succeeded, after a long wait and struggle, according to a young lady at one of the banks, the withdrawable amount varied from N3,000 to N5,000.
Narrating his experience at one of the new generation banks along Library Avenue, Umuahia, a middle-aged man said he was paid N10,000.00 in '"dirty N100.00 notes across the counter".
An elderly lady, when asked about her own experience at the gate of an old generation bank, flashed four bundles of new N5.00 notes, which amounted to N2,000. "This is all I have gotten, from inside.'
Some of the senior management staff of the banks, who pleaded not to be mentioned in print, said the situation was getting worse as the new notes were not readily available.
"We're almost overwhelmed. As I speak we don't have the new notes in our vault. If before the end of the day we're unable to get allocations from the Central Bank, our ATMs will dry up," said one of them.
Some customers told LEADERSHIP correspondent that they have been on the queue before the bank was opened, yet they are unable to withdraw money from their account.
Shortage Of New Naira Notes Hits Kebbi, Enugu Traders
Despite the extension of the deadline for Naira swap, , there was shortage of the new notes at ATMs in the banks in Birnin Kebbi, capital of Kebbi state .
Shop owners in the state have threatened to closie shop due to the acute shortage of the new naira notes in banks in the state
Chairman of the traders association of the state, Umaru Danguwa Gwadangaji, who lamented the development during an interview with journalists yesterday in Birnin Kebbi, said there is no option other than all the traders in the state to close their shops since there is no availability for the new notes, even in the banks..
"If this situation persists we will force our members in the market and other places to close down their shops " chairman vowed.
When our correspondent yesterday some ATMs at UBA, Unity, Zenith, Access banks along Ahmadu Bello Way in the state capital, Birnin Kebbi, customers were in long queues waiting for the management of the banks to load new notes on the ATMs.
Our Correspondent gathered from some customers that most of them were at the banks from 5:30am till midnight and kept waiting to make withdrawals but found it difficult.
Enugu Residents have raised the alarm over non availability of both old naira and new naira notes.
Our correspondent who went round Enugu observed that many of the customers, who queued for several hours, could not withdraw money at the end due to absence of money at the ATMS and even inside the banking halls.
Mrs Nnenna Ifeomah, who spoke to our correspondent, said she waited for several hours at the ATMs but could not get money at the end of the day .
A worker at a bank, who spoke on condition of anonymity, told our correspondent that they don't have enough new notes for people to collect.
"CBN should tell people the truth; we don't have enough of the new notes. They should tell Nigerians the truth. We are really passing through pressure," she stated.
Meanwhile, life had become hard for Enugu residents following their inability to procure the new redesigned Naira notes
Even with the extension of the deadline for swap and change of the old notes to new notes as announced by the Central Bank, the money is nowhere to be seen in Enugu.
Most banks ATMs visited were not dispensing cash but those who were doing transfers had free access.
A manager of a bank at Zik Avenue, who spoke on condition of anonymity said "It is not our fault here. We are not permitted to talk to the press but you can go to our main branch to find out from our information unit. We are only giving customers N2000," the manager said.
The situation is even worse because POS operators are cashing in on the situation to rip off the customers as they charge N100 for every N1000 be it for old or new currency.
The situation is more violent in Akwa Ibom as hundreds of customers attack virtually all commercial banks on a daily basis in Uyo, the Akwa Ibom state capital, for cash.
There were protesting customers at the Udo Udoma Banking Layout, Oron Road, Abak Road and the University of Uyo, where officials of the Central Bank of Nigeria (CBN) and operatives of the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices (and other related offences) Commission (ICPC) monitored the cash circulation.
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Customers in long queues condemned what they described as "government's sudden intervention in the monetary policy without considering the sensibilities of the ordinary people."
"I have been here for the past two days, yet I won't be able to access my money to take care of my bills." Enang Bassey, who said he came from the neighbouring Owot Uta village in Ibesikpo Asutan Local Government Area, lamented.
"They only allow us to withdraw only N5,000 at a time. If you want to withdraw again, you must go and queue behind at the back in this long column of line. They should allow us to exhaust our limit of N20,000 at once." Affiong Asuquo, a petty recharge cards seller, who lamented that she left her small shop for cash, told LEADERSHIP at First Bank, Oron Road branch.
Review Measures To Ease Hardship, Atiku Tells Emefiele
Meanwhile, the presidential candidate of the People's Democratic Party (PDP), Atiku Abubakar, has urged the Central Bank of Nigeria (CBN) to immediately review its strategies to ensure seamless circulation of the new naira notes to alleviate the hardship confronting ordinary people across the country, especially rural dwellers, who need cash for their daily transactions.
In a statement released in Abuja yesterday from his campaign office, Atiku praised the CBN for listening to the demand of the ordinary people by granting a ten-day extension for the exchange of the old naira notes for new ones.
He however advised that no further extension should be considered after February 10 so as not to destroy the purpose and objective of initiating the redesigning of the currency.
"The additional ten days will enable our people in the rural areas and ordinary people across the country to take the naira in their possession into the banks. It will also enable the CBN to further circulate the new currency notes among banks so that people can have easy access.
"Within these 10 days, I urge the CBN to initiate measures that will alleviate the problems being encountered by the people in exchanging their old naira notes for new ones and getting more new notes into circulation. The CBN may have to consider printing more currency notes to eliminate the current scarcity among ordinary people, especially rural dwellers who need them for their daily transactions.
"If the CBN thinks its officials and banks must operate at the weekend in order to address the needs of the ordinary people and rural dwellers, it may have to consider this option, after all the amount these people require is not huge. The essential element here is ensuring that the new currency goes around and is well distributed to the points where people can easily access them. Every good policy must be people-centred and must not bring an avoidable difficulty to the people," he said.
He, however, warned the CBN to be wary of the elite whose motive for crying out about more postponement of the deadline for the tenure of the old naira notes is sinister and far from being altruistic.
Atiku went on: "I am totally in support of building a cashless economy and reducing the amount of cash in our economy. The cashless policy and reduction of the cash in circulation has many advantages and every patriotic Nigerian should support the CBN on this. It will help to reduce the flow of illicit funds in our economy. It will help to defeat the funding of terrorism and deter the circulation of drug money in our economy. It will help our fight against corruption.
"More importantly, a cashless economy will help to save and grow our democracy. Those who have devised several means of buying votes in the coming elections and using money to corrupt the electoral system as well as destroying the principle of one man, one vote and the goal of a credible, peaceful, free, and fair poll are the ones shouting against the cashless policy and naira redesign."
He urged the CBN and the government not to succumb to the current pressure from those he called anti-democratic elements who are pretending to be democrats but ganging up against the CBN because of the currency redesigning and the cashless regime it seeks to enthrone.
"They have been scheming and lobbying day and night to frustrate the policy. Now, their new measure is to lobby for a second postponement of the deadline for the change of currency.
"There should be no further postponement of the new naira regime after the expiration of the February 10 deadline. The vote riggers are seeking to push the CBN to extend till after the election when they would have achieved their evil plots. The CBN and the Presidency should be steadfast. The merits of the new naira policy far outweigh the little inconvenience we are experiencing," he said, adding that the policy will benefit the country in the long term.
"We should not allow those selfish, parochial people with the narrow vision to derail it." Atiku stated.
