The scarcity of naira notes is once again disrupting banking operations, with banks across Nigeria rationing cash withdrawals at their branches and ATMs. This development has led to significant challenges for customers and a sharp rise in charges by Point of Sale (PoS) operators.
Banks Limit Cash Withdrawals
Over the past few days, customers have struggled to access the cash they need for daily expenses. Reports from various branches reveal that banks are capping ATM withdrawals at N5,000 to N10,000 per transaction and over-the-counter withdrawals at N20,000 per day.
In Lagos, customers at banks on Ajose Adeogun Street and other commercial areas expressed frustration over these restrictions. Some bank ATMs have ceased dispensing cash entirely, forcing customers to rely on PoS operators or mobile transfers.
Steven Okon, an entrepreneur in Akowonjo, Lagos, lamented the situation, stating, “It is becoming increasingly difficult to get cash. ATMs are dispensing only N5,000 or N10,000 per transaction, while over-the-counter withdrawals are capped at N20,000 daily.”
Similar experiences were reported by other customers, including Lucas Ajanaku, who noted that he was denied a N50,000 withdrawal at his bank branch in Ayobo and was instead given N20,000 without explanation.
PoS Operators Capitalize on Cash Crunch
As banks struggle to meet cash demands, PoS operators have raised their transaction charges significantly.
In Lagos, Ogun, and Abuja, charges for cash withdrawals have increased by 50% to 100%. Customers in suburban areas like Olambe and Akute in Ogun State now pay N300 to withdraw N5,000 and N500 for N10,000. Meanwhile, in upscale areas such as Ikoyi and Victoria Garden City, charges can go as high as N500 for N5,000 and N1,000 for N10,000.
Michael Obinna, a traveler heading from Lagos to Port Harcourt, shared his ordeal: “Despite several banks in the area, none of the ATMs was dispensing cash. I had no choice but to use a PoS operator, paying N700 to withdraw N35,000 for my trip.”
CBN Intervenes Amid Rising E-Payment Transactions
The Central Bank of Nigeria (CBN) has reassured Nigerians that sufficient cash is available to meet public needs. CBN Governor Olayemi Cardoso has warned banks against hoarding cash or failing to load ATMs, promising to impose fines on non-compliant institutions.
Speaking at the 2024 Chartered Institute of Bankers of Nigeria (CIBN) Bankers’ Dinner in Lagos, Cardoso said: “We are aware of the ongoing challenges with cash availability at ATMs. Effective December 1, 2024, customers can report difficulties withdrawing cash directly to the CBN.”
The CBN also continues to encourage the use of alternative banking channels such as mobile banking, USSD, and bank transfers. This comes as e-payment transactions in the first half of 2024 surged by 86.44% to N566.39 trillion, according to Nigeria Inter-Bank Settlement System (NIBSS) data.
Conclusion
The cash scarcity has highlighted the reliance of many Nigerians on physical cash despite increasing adoption of digital payments. While the CBN’s interventions aim to alleviate the challenges, the immediate future remains uncertain for bank customers struggling to access their funds.
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