A resurgence of widespread and intense cash rationing by banks have compounded the severe economic challenges confronting Nigerians driven by high prices of goods and services.
The House of Representatives, however, asked the Central Bank of Nigeria, CBN, to urgently address the situation which has disrupted economic activities, causing significant hardship to citizens.
Vanguard's investigation revealed cash withdrawal limits ranging from N5,000 to N10,000 in most bank branches for over-the-counter and automated teller machine (ATM) transactions.
Bank customers who spoke to Vanguard across the country narrated bitter experiences in withdrawing cash from the banks.
Bank officials, who spoke to Vanguard, attributed the development to limited cash supply from the Central Bank of Nigeria, CBN, and a decline in cash deposits by customers.
This development is in spite of a recent warning by the Central Bank of Nigeria, CBN, which directed banks to ensure efficient cash disbursement to customers Over-the-Counter (OTC) and through ATMs as the CBN will intensify its oversight roles to enforce this directive and ensure compliance.
Additionally, the CBN, in a circular signed by the CBN's acting Director of Currency Operations, Solaja Olayemi, and its acting Director of Branch Operations, Isa-Olatinwo Aisha, urged members of the public who are unable to obtain cash Over-the-Counter or through ATMs at DMBs, to report such instances using the designated reporting channels and format provided, the CBN had also promised.
Lagos
Many banks visited in Lagos yesterday dispensed limited amounts of cash, with some ATMs not functioning at all.
Vanguard's visit to a new generation bank at Ikotun revealed cash withdrawal limit of N10,000 from the ATM and N10,000 for across the counter.
Other bank customers were allowed a withdrawal limit of N20,000 across the counter and N20,000 limit for ATM. Non-customers of the bank could access only N5,000.
Customers of a new generation bank were able to withdraw up to N10,000 across the counter and N20,000 from the ATM.
Vanguard also observed long queues at the ATM points of some of the bank reflecting the severe difficulty of accessing cash.
At a new generation bank on 2nd Avenue in Festac, customers were only able to withdraw N10,000 over the counter, while the ATM was not dispensing cash.
When Vanguard visited a new generation bank at Festac, only N20,000 was given to customers over the counter, while the ATM had no cash. The bank was deserted.
Our reporter observed a customer leaving the bank upon hearing he can only withdraw N20,000.
However, for a new generation bank on 200 Road, Festac town, there was no money available over the counter.
Meanwhile, their customers could withdraw N40,000 at N20,000 per withdrawal from the ATM, while non-customers can withdraw N20,000 at N10,000 per withdrawal.
Another bank on 200 Road had no money in their ATM, while over-the-counter withdrawals were limited to N20,000.
Another new generation bank at 511 Road paid bank customers N100,000 over the counter, while non-customers could get N25,000 at N5,000 per withdrawal. However, as at 12:37 pm, the ATM had stopped dispensing.
A new generation bank at Mile 12 gave customers N40,000 over the counter, but limited non-customers to N10,000. Sterling Bank in Ketu offered N20,000 over the counter and N50,000 through ATMs.
An old-generation bank limited cash withdrawals to N10,000 over the counter, but offered up to N50,000 for withdrawals of N1,000 or more. Some customers in the banking hall who requested between N30,000 and N50,000 in their withdrawal slips were asked to complete another slip with a lower cash withdrawal request in line with the limit of the bank which ranges between N10,000 to N20,000.
Most of the banks showed cash limitation of N10,000.
Customers of the banks were allowed to withdraw the N10,000 at once but non-customers withdraw N5,000 twice.
Lamenting, Mrs. Yetunde Usman, a bank customer said: "I don't have an ATM card because the ATM terminals in these banks have swallowed three of my cards this year. As a result, I stopped applying for cards and I only do cash withdrawals from my bank."
Also expressing her frustrations, Miss Bamgbose Adura said: "You will have to pay N200 to get N5,000. Before it was N100. This has pushed many people to visit the banks. But the situation at the bank is worrisome."
A bank staff, who spoke to Vanguard on anonymity, said: "The Central Bank of Nigeria, CBN, has not supplied us with cash. So, we have to give out the little we have.
"Also, you know that many customers don't make deposits during this period. They give cash to Point of Sales, PoS, and operators instead of bringing it to the bank."
Why there is scarcity-- Bank staff
A staff of one of the banks in Festac told our reporter that the CBN is experiencing cash crunch and as such, banks do not have cash available for customers.
According to him, it keeps getting worse, and as at yesterday, their bank was one of the financial institutions within the area that paid customers up to N100,000.
Abuja
Investigations conducted by Vanguard at various bank branches in Abuja reveals a grim picture of cash availability, with many banks allowing customers to withdraw only minimal amounts both at the counter and via ATMs.
At a new generation bankcustomers reported being allowed to withdraw a maximum of N5,000 over the counter, while others stated that the limit had been increased to N10,000 at certain branches.
Similarly, an old generation bank was reportedly disbursing N10,000 per customer at its counters.
Many customers expressed dissatisfaction, noting that the limits were insufficient to meet their daily needs, especially given the prevailing inflation and high cost of living.
ATM services did not fare any better. At several locations, customers had to endure long queues, with many ATMs either out of service or dispensing limited amounts of cash, often in smaller denominations.
Bank staff, speaking under anonymity, said: "We don't have enough cash to meet the demands of our customers."
Ondo
Vanguard's investigation showed that customers find it difficult to obtain sufficient cash over the counters and at ATMs across the state
The maximum amount dispensed by banks across the counter in Ondo State is between N10,000 and N50, 000 while few the ATMs dispensed N20,000 to customers and N50,000 to customers of other banks.
Findings, however showed that majority of the ATM terminal don't have cash to dispense to customers who visited them.
Customers were asked by bank officials to collect larger amounts via POS agents.
Speaking on the condition of anonymity, a bank official told Vanguard that the development was due to the limited cash available in the banks.
According to him "The amount given to the banks are not enough to load ATMs.
"It was also discovered that many customers don't deposit their cash in the banks hence the scarcity across the country."
Findings also showed that most POS operators have increased their charges following the scarcity of cash.
One of the POS operator told Vanguard that they buy cash from filling station attendants and BEDC operators to remain in business.
Ekiti
Despite the Central Bank of Nigeria, CBN's directives to Banks to make cash available to customers in the country, findings by Vanguard in Ekiti show that some customers are still experiencing significant difficulty obtaining sufficient cash over the counters and at ATMs in commercial banks
A Point of Sales Operator, operating within Okesa market in Ado-Ekiti, Rebecca Jinadu, said her bank only dispense N20,000 over the counter, saying many were advised to use ATMs.
She said: "Whenever I get to the bank these days, they only give N20,000 over the counter but do advise us to use ATM which normally dispense between N30,000 and N50,000".
Speaking with a customer at a popular commercial bank in the state, Joseph Awe said the bank officials complained about limited cash, and customers were given only N30,000 at the counter and ATM.
"I have been to the bank this afternoon, I wanted to withdraw N50,000 but was given N30,000 instead."
One of the bank officials who pleaded anonymity, said the bank is currently experiencing low availability of cash, with the assurance that customers will have access to any withdrawal soon.
Oyo
Vanguard's visit to several banks in Ibadan, the Oyo State capital showed growing frustration among customers over strict cash withdrawal limits and lengthy waiting times.
Findings conducted by Vanguard yesterday revealed that customers were allowed to withdraw a maximum of N10,000 over the counter and N20,000 via ATMs, leading to widespread dissatisfaction among bank customers.
Many customers reported enduring long queues, with waiting times often exceeding an hour.
At an old generation bank, Femi Adekunle, a small business owner, shared his experience: "I arrived here before 9am, and I'm still in line. I just want to withdraw cash for my business, but the limit is frustrating. I can't operate effectively with just N10,000."
Chijioke, a customer at another bank, echoed the same sentiment, stating, "N10,000 is hardly enough for anything these days. I don't understand why the banks can't increase the limit. It feels like they're making it harder for us to access our own money.'
At a new generation bank, a customer named Fatima expressed her disappointment: "Every time I come here, it's the same story. The queues are long, and I can't get the amount I need. It's really disappointing. I've seen people leave without transacting because they just can't wait any longer."
In addition to the withdrawal limits, numerous customers highlighted the emotional toll of waiting. "It's exhausting," said Temitope, a regular customer of a bank.
When approached for comments, bank staff at a new generation bank provided insights into the rationale behind the withdrawal limits.
The staff, who preferred to remain anonymous, explained, "We understand the frustrations of our customers, but these limits are in place for security reasons and to manage liquidity. It's a company policy that we have to adhere to."
Another employee at another bank acknowledged the long wait times, stating, "We are experiencing higher customer volume than usual, and while we try our best, staffing during peak hours is a challenge. We are working on strategies to improve service delivery and reduce waiting time."
Ogun
Residents of Abeokuta, Ogun State capital are groaning following the scarcity of cash that has hit banks across the country.
Investigations by our correspondent in Abeokuta revealed that bank customers were disappointed when they could not get the required cash they needed for their needs
Some of the bank customers who spoke with Vanguard said, the amount they got was far below their expectations.
A trader, Mrs Funmi Adelani said she wanted to withdraw N150,000 from the counter, but all she could get was N50,000.
She said: "This is the Christmas season and I need money for my business. My intention is to get money for my business, but to my surprise, I was given peanuts.
Another customer, who simply identified herself as Mary, said her intention was to withdraw N100,000, but she ended up getting N50,000.
Also speaking, Mr. Adebola, said he was in the bank to collect N50,000, but was able to collect N20,000.
Investigations at the ATM points, revealed that the maximum amount anybody can collect is N40,000.
A visit to a new generation bank, revealed that a customer of the bank can only receive N40,000 from the ATM per day, while customers from other banks can only N20,000, as maximum withdrawal.
At an old-generation bank ATM point, customers and non-customers can get N40,000. The only difference is that while customers can withdraw N40,000 at once, customers from other banks can withdraw N10,000, four times to make up for N40,000.
Officials of some of the banks visited, who spoke with Vanguard under the condition of anonymity, attributed the situation to scarcity of cash in banks.
They said the amount given to customers depends on the availability of cash and the number of customers around.
They called on bank customers to make use of transfer for their business transactions.
According to Semilore Titilope, a customer who was accosted at Wema Bank, Mokola branch, the weekly limit that Wema Bank gives across counter is N500,000 which translates to N100,000 per day while customers are also allowed to collect N100,000 via ATM per day.
A banker confirmed it saying the fault is not from the bank but it is the directive from the CBN which they must comply with.
Abia
Bank customers in Abia State also expressed frustration over N5,000 cash withdrawal limit by some of the banks in the state.
One of the bank, customers was, however, allowed to withdraw up to N10,000.
One of the banks also allowed its customers to withdraw up to N10,000 but could collect up to N40,000.
The withdrawal limit at the Market branch of an old generation bank at Umuwaya Road by Okwulehie Street Umuahia is N5,000, but at its main branch at Good Shed, it allows up to N20, 000.
In most of the ATMs, the highest withdrawal limit is N10,000.
Anambra
Bank customers in Anambra State said they no longer go to the banks to request for cash withdrawals because that aspect of banking services had since become a nightmare for them.
Most of the ATMs are also not functioning, leaving the customers with no other choice than to patronize the Point of Sale, POS, operators whenever they need cash.
The development has made banking halls in the state empty, except for those making one remittance or the other.
At one of the banks inside the state secretariat, no customer is allowed to withdraw more than N20,000 no matter how much is requested.
On inquiry, the bank workers simply said that there is no cash and referred the customer to the ATM which also has not been functioning for some time.
Surprisingly, all the POS operators that stay very close to each other have cash to dispense at exorbitant commission. For instance, most POS operators in Awka now collect N300 for every N5000.
Ebonyi
Banks in Ebonyi State have been accused of hoarding cash to maximize profits during the yuletide season.
Vanguard investigations revealed that bank customers who came from hinterlands to withdraw cash for business and for the festivity met bricks wall.Some bank customers who were stranded at the banks' premises said they were told to withdraw only N10, 000 over-the-counter and N5,000 from ATM depending on the bank while other banks paid N20,000 only from the counter.
One of the customers Mrs. Rose Nworie lamented that she deals in food stuff and go to villages to buy food produce and needed over N500,000 but got N20,000. Nworie said: "I came to this bank (name withheld) with intention of withdrawing over N500,000 but the bank workers told me that there was no money in the bank."
The Chairperson of the Ebonyi State Market Women's Association, Mrs. Nneka Itumo said: "This trend has exacerbated the economic hardship faced by the masses. The banks have started hoarding available cash, as they did last year. Meanwhile, POS operators are maximizing profits at their customers' expense."
Bayelsa
Vanguard's visit to commercial banks in Yenagoa, the state capital, revealed that one of the old generation banks allowed cash withdrawal of N50,000 while the limit in other banks ranged from N10,000 to N20,000.
Also, many of the ATM kiosks within the banks' premises were not dispensing cash to the public while the few with cash were dispensing between N10,000 and N20,000.
"This is really a disturbing situation," lamented, a customer who simply identified himself as Gabriel. "I wonder where the Point-Of-Sale operators are getting their own money from that a customer could get as much as N100,000 from them whereas the banks are claiming they don't have cash."
Samuel Ese said: "Honestly, since the banks began this unprofessional attitude, I have hardly gone to the banking hall or ATM machines. What I devised is to rather do transfers whenever I could."
Edo
In Edo State, many banks customers cannot withdraw more than a certain amount mostly N10,000 and when they want to use ATM, they can't collect more than N40,000 in tranches.
A customer, who gave his name as Hassan said: "Since the naira redesign it has been tough withdrawing money from our account. Things improved a bit but in the last one month, my bank does not give more than N5,000 across the counter. They say we either do ATM or transfers."
A banker told Vanguard that one of the reasons for the cash rationing is to encourage cashless transactions.
"But in areas close to the markets such as Mission Road, Akpakpava, Mission Road, New Benin, Oba Market areas, our branches there give more to depositors because there are so many depositors in those market areas and they pay to the banks.
"Another factor responsible for many branches not having enough money is that many depositors now prefer to sell their cash to POS operators instead bringing them to the bank as deposits."
Rivers
Customers in some commercial banks in Port Harcourt, Rivers State capital complained bitterly over the internal policies of some banks to limit cash withdrawals over-the-counter to a paltry sum of N10,000 only.
They also frowned at the non-availability of cash in some automated teller machines, ATM, with some of them only dispensing cash between 9am and 12 noon from Monday to Wednesday.
In one of the most popular commercial banks located on Port Harcourt/Aba road in Port Harcourt, a customer who simply identified himself as Craig said in recent times, "my bank cannot give you more than N10,000 cash across the counter. Sometimes, the ATM does not dispense cash.
"This frustration", he said "is the reason why many people now patronize POS (point of sale) operators for their cash transactions".
Nasarawa
Commercial banks operating in Nasarawa State have limited cash withdrawals for over-the-counter transactions to N10,000.
The banks however maintained the existing N20,000 daily withdrawal limit for Automated Teller Machine, ATM, making it difficult for customers to access funds.
Most of the banks' branches visited by Vanguard in Mararaba, Karu Local Government Council of the state yesterday pegged withdrawal limits to the above-mentioned amounts.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Bank customers were seen grumbling inside the bank halls following frustrations occasioned by the withdrawal limit policy of the banks.
Some bank staff approached by our correspondent, who posed as a potential customer in need of cash, attributed the customers' ordeal to inadequate cash in the banks' vaults.
"We don't have cash; you are passing through this because even the banks don't have cash themselves. We are just giving out what we have in the banks," he said.
The development has led to an increase in the Point of Sale, POS charges, with operators charging between N200 and N250 for N5,000 withdrawals and N400 for withdrawals of N10, 000.
Similarly, to withdraw N20, 000 from POS, the operators charge N800 and N1,600 for 40,000 respectively.
Akwa Ibom
Since mid-November, there has been a lamentation of the scarcity of cash, especially by business operators in Uyo Akwa Ibom State capital.
Some POS operators who spoke on Tuesday lamented that also lamented that getting cash from the banks has become a challenge in the past few weeks.
It was observed that the POS operators last week increased their charges by N100.
One of them, who spoke on condition of anonymity, said: "It has become very difficult for one to withdraw enough cash from the counter. But in most cases, you will succeed in withdrawing the amount you need if you know someone in the bank."
Reps to CBN: Address cash crunch
Meanwhile, the House of Representatives yesterday expressed concern over the ongoing cash crunch in commercial banks across the country, calling on the Central Bank of Nigeria, CBN, to address the situation which has disrupted economic activities and caused significant hardship to citizens.
This followed a motion of urgent public importance moved by Uguru Emmanuel.
Moving the motion, Emmanuel highlighted the severe economic and social implications of the cash scarcity, which has left many Nigerians unable to access funds even for basic needs.
He noted that while economic growth relies heavily on consumer spending and business investment, the persistent cash shortage has become a major impediment to these activities.
The lawmaker recalled that the CBN in its policy directive of December 21, 2022, set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities.
However, he observed that commercial banks have largely disregarded this policy, often limiting cash withdrawals to as little as ¦ 10,000 or nothing at all.
"Entrepreneurs and individuals are subjected to long queues, sometimes spending days at banks without success. This situation has particularly affected rural dwellers who rely on cash for transactions and lack access to digital payment systems," Emmanuel lamented.
In its resolution, the House mandated the Committee on Banking Regulations to investigate the cash crunch in commercial banks and report back within one week.
The House directed the CBN to urgently address the cash scarcity if it was not responsible for the shortage.
"That's why we are now charging N300 for N10,000 instead of N200 that we have been charging. It is not our fault."
A customer of one of the old generation banks who identified himself as Mr. Etuk said his banks recently limited cash withdrawals to N100,000.
"Sometimes they will pay you only N40,000 and ask you to use your ATM to withdraw the remaining", Etuk added
Emmanuel Udoh Effion, a Uyo-based printing press operator, who banks with one of the old-generation banks said: "This month of December the highest I have been allowed to collect is N50,000 at the beginning of the month.
These days they allow between N10,000 and N20,000 maximum withdrawal over the counter.
They say there is no money and they pressure customers to do transfers over the counter instead.
Arita Essien, who operates POS service in Uyo told our reporter, "Business has been difficult because at my bank, they won't let you withdraw more than N20,000. That is on a good day.
Most time, they complain that there is no cash. They say they want to encourage customers to embrace online banking and POS.
Some other staff would tell you there is not enough cash in circulation so people should do their business with transfers.
The challenge makes us buy cash from traders and all sorts of people engaged in daily cash transactions. But we keep wondering where people get all the fresh mint cash they spray at weekend parties if banks say there is no cash."
