Several days after the Central Bank of Nigeria (CBN) issued a directive compelling banks to ensure the availability of cash at Automated Teller Machines (ATMs) and within banking halls, Nigerians are still grappling with severe cash shortages. The inability to access funds has left many citizens frustrated and searching for alternative solutions.
The ongoing cash scarcity has forced Point of Sale (PoS) operators to explore unconventional methods to source cash, often turning to markets, fuel stations, and even abattoirs. These operators are left to navigate a challenging environment where cash is scarce, and operational costs continue to rise.
Visits to various bank branches across the country reveal a troubling trend: only a handful of ATMs are dispensing cash, and even those have implemented strict withdrawal limits. Customers using debit cards from other banks are restricted to withdrawals of ₦10,000, while individuals with cards issued by the operating bank are permitted a maximum of ₦20,000.
This shortage persists despite assurances from CBN Governor Olayemi Cardoso. On November 29, 2024, Cardoso pledged to tackle the cash scarcity head-on, promising that the apex bank would conduct random inspections of Deposit Money Banks to ensure compliance. He also warned that any institution found sabotaging the directive would face severe penalties.
“Banks or financial institutions engaged in malpractices or deliberate sabotage will face stringent penalties,” Governor Cardoso asserted, urging Nigerians to report difficulties through CBN-provided hotlines and email addresses.
However, the reality on the ground paints a different picture. At several ATMs across cities like Lagos and Abuja, machines remain non-functional or dispense limited amounts of cash. Many customers have resorted to banking halls, where cash withdrawals are capped between ₦10,000 and ₦50,000, forcing individuals to seek out alternative channels such as PoS operators.
For most Nigerians, relying on PoS operators has become a necessity rather than a choice. These operators, however, face their own challenges. In addition to sourcing cash from unconventional locations, they deal with exorbitant fees and operational stress, which has led to higher charges for their services.
One PoS operator explained, “Market traders prefer cash because it helps them avoid issues with fake alerts or failed transactions. To meet demand, we often book cash ahead by transferring money to traders and collecting physical cash later. The same applies to fuel stations.”
Another operator lamented the difficulties, saying, “Banks are no longer dependable. I rely on deposits from customers and cash sourced from traders to keep my business afloat. The process is stressful, but it’s the only way to meet customer demand.”
The cash crunch, which dates back to February 2023 during the redesign of the naira, has not only persisted but has also imposed significant hardship on citizens. Many individuals express frustration over the inability to access funds for basic needs, with some accusing banks of failing to comply with CBN directives.
A Lagos resident shared her ordeal with Leadership newspaper: “I went to several ATMs, but none were dispensing cash. It’s disheartening, especially after the CBN promised that the situation had been resolved.”
Despite the CBN’s efforts to enforce compliance through penalties and spot checks, the impact on ordinary Nigerians remains profound. Many are now questioning the effectiveness of the measures and the commitment of banks to alleviate the crisis.
As the cash shortage continues, the reliance on PoS operators highlights a deeper systemic issue in Nigeria’s financial infrastructure. Until lasting solutions are implemented, the frustration and hardship faced by millions of Nigerians are unlikely to abate.
