Reps task CBN on cash scarcity …as Nigerians 're at mercy of POS operators

The House of Representatives has called on the Central Bank of Nigeria (CBN) to urgently address the current cash crunch in several commercial banks across the country.

The House further directed its Committee on Banking Regulations to investigate the situation and report back in one week.

In the wake of the cash scarcity, Automated Teller Machines operated by commercial banks have been dispensing between N5,000 to N10,000 only, in the last one week, leaving many Nigerians at the mercy of Point of Sales (POS) operators who have resorted to charging higher rates.

During a plenary adoption on Tuesday, a motion of urgent public importance was moved by the member representing Abakiliki/Izzi Federal Constituency, Ebonyi State, Emmanuel Uguru.

He pointed out that cash supply shortages in commercial banks had posed a lot of inconveniences on individuals and the nation’s economy.

Uguru recalled that on December 21, 2022, “The CBN by a policy contained in a circular number BSD/DIR/PUB/LAB/015/073 reviewed the cash withdrawal limits across all channels to N500,000 and N5m for individuals and corporate entities respectively, and which is not known to have been repealed.
The House is concerned that the commercial banks in the country have jettisoned this policy as they can hardly give N50,000 to even current account holders.”

He added: “The House is disturbed that the cash crunch in commercial banks in the country has become a clog in the wheel of economic activities, as entrepreneurs are subjected to long queues and sometimes spend a whole day or two in the bank.”

“This results in a loss of man-hours only to get N10,000 and in most cases go back home with nothing, subjecting this class of persons who have no access to POS that is mostly not applicable in some articles of trade especially in the rural areas to hopelessness. This causes untold hardship to this uninformed populace most of whom are rural dwellers we are representing.”

“Lives could even be lost for lack of cash to take the sick to hospital and to buy food with.”

Uguru further argued that if the CBN continued to starve commercial banks of cash, especially as the Yuletide season approaches, many people and even businesses would be frustrated and people would land in increased hardship.

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