Kehinde Fajobi
The House of Representatives on Tuesday expressed alarm over the ongoing cash shortage in commercial banks, urging the Central Bank of Nigeria (CBN) to urgently address the crisis, which has caused severe economic disruption and hardship for Nigerians.
The concerns were raised during a plenary session following a motion of urgent public importance by Hon. Uguru Emmanuel.
Highlighting the distress caused by the cash scarcity, Emmanuel noted that many Nigerians cannot access funds for basic needs.
He said, “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.”
He attributed the crisis to the non-compliance of commercial banks with the CBN’s cash withdrawal policy.
The directive, issued on December 21, 2022, sets withdrawal limits of ₦500,000 for individuals and ₦5 million for corporate entities.
However, banks have reportedly restricted withdrawals to as little as ₦10,000 or less.
Emmanuel also raised concerns about the disparity between banks and Point of Sale (POS) operators, who appear to have unlimited access to cash and often sell it at inflated rates.
He questioned, “Where do POS operators get their cash from while banks remain dry?”
Warning of a worsening crisis as the festive season approaches, the lawmaker called for immediate action to prevent further frustration for businesses and deeper hardship for citizens.
In its resolution, the House directed its Committee on Banking Regulations to investigate the cash shortage in commercial banks and report back within a week.
It also called on the CBN to urgently address the scarcity if it is not directly responsible for the situation.