Naira Notes Scarcity: Crunch worsens, banks ration cash across the counter
Fresh developments in the financial sector have shown that despite the Central Bank of Nigeria, CBN’s move to ameliorate the cash crunch situation by suspending charges for cash withdrawals above regulatory limits, scarcity of currency notes in the banks nationwide has continued to hit harder, even after the Yuletide season.
Findings by Financial Vanguard revealed that banks across the country have continued to ration cash withdrawals in the banking halls and through their Automated Teller Machines (ATMs) while Point of Sale Operators, PoS, operators, have taken advantage by hiking transaction fees by not less than 100%. Recall that the CBN had recently suspended charges for cash withdrawals above the regulatory limits of N500,000 for individuals and N3 million for corporate account holders, nonetheless, banks still peg customers’ withdrawals far below the statutory limits.
The apex bank had said that the suspension of the charges will last till April 30 this year and threatened to sanction banks and PoS operators found to be complicit in the current Naira notes scarcity crisis.
The apex bank, in a statement, urged members of the public to report infractions, especially hoarding of Naira notes by banks and PoS operators, in their areas to the nearest branch of the apex bank or via the link: https://forms.office.com/r/frZJ0f2hFQ to address complaints and inquiries on the subject.
Scarcity persists
Checks by Financial Vanguard on Friday in Abuja showed that limits for across-the-counter withdrawals in most commercial banks ranged from N10,000 to N20,000 and the highest, N40,000.
Two first-generation banks in Area 7 and 8, Garki, while the ATMs were without cash, across-the-counter withdrawals were limited to N20,000.
In the same area, a check on second-generation banks branches also in the same area showed that the ATMs were empty while across-the-counter withdrawals were limited to below N10,000 and below N20,000
In another two new-generation banks branches in the same area, while the ATMs were dispensing cash, customers with other banks’ ATM cards were limited to a maximum of N5, 000 per transaction and limited to only two transactions per card. An official in the new generation bank told Financial Vanguard that the rationing was because “we have not received enough cash”.
The situation is not any different across Lagos metropolis.
In Ketu, Mile 12, Amuwo Odofin, Surulere, Trade Fair axis and other environs, all banks, including first generation, second generation and new generation banks did not load cash into their ATMs for customers to withdraw.
There were long queues, stretching from inside the banking halls to outside as customers rushed to withdraw monies for the weekend.
Many were not happy as they were only able to get N10,000 each, after queuing for several hours. Similarly, customers were also seen queuing at many banks in Ejigbo and environs for cash as the ATMs were empty of cash.
Some of the bank branches visited in Amuwo Odofin area had no cash available across the counter while those that had limited withdrawals to between N5,000 and N10,000 per customer, irrespective of whether the account was individual or corporate.
Checks around Trade Fair axis in Lagos State revealed the same frustration by customers as banks in that area adopted different strategies to tackle the situation.
Also, Financial Vanguard discovered that some of the new generation banks around Abule Ado that, hitherto, were not loading their Automated Teller Machines (ATM) at the twilight of 2023 due to the scarcity, now load the machines though they set different withdrawal limits for customers and non-customers.
A visit to a second-generation bank at Trade Fair Lagos showed that non-customers of the bank can withdraw up to N40,000 from the bank’s ATM but in batches of N10,000, while customers of the bank are allowed withdrawals of N40,000 in batches of N20,000.
At another second-generation bank located in the same area, the story was different as non-customers of the bank were allowed a maximum of N5,000 withdrawals in batches of N1,000, while the applicable charges still apply.
However, at the counter, the customers could withdraw as much as N40,000. An official of the bank who pleaded anonymity told Financial Vanguard that customers can withdraw more than N40,000 across the counter depending on the type of account.
Customers react
A customer in Lagos, who pleaded anonymity, said: “There is no cash anywhere. I have been queuing for several hours and can only get N10,000. It is not sufficient for my family’s needs at this time.”
While lamenting the difficulty to get cash at a second-generation bank located in Ikeja, Lagos, a customer who identified herself as Bola said: “My visit to a bank to make withdrawal did not yield result. “I first went to one of them but I could only withdraw N4,000. I just noticed that another one is paying N20,000 and I decided to go there but I could not withdraw because they said that I have exceeded my limit for the day.
