House of Representatives Urges CBN to Address Nationwide Cash Scarcity

The House of Representatives has raised concerns over the persistent cash scarcity in commercial banks nationwide, describing it as a source of significant hardship for Nigerians.

In a motion presented under Matters of Urgent Public Importance by Uguru Emmanuel, the House called on the Central Bank of Nigeria (CBN) to urgently address the situation, which has severe economic and social implications.

Emmanuel noted that the ongoing cash shortage has hindered consumer spending and business investments, which are critical drivers of economic growth.

He recalled the CBN’s December 21, 2022, directive setting cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities. However, commercial banks have reportedly disregarded the policy, often restricting cash withdrawals to as little as N10,000 or nothing at all.

“Entrepreneurs and individuals face long queues, sometimes spending days at banks without success. This challenge is particularly acute for rural dwellers who depend on cash for transactions and lack access to digital payment systems,” Emmanuel lamented.

He also pointed out a troubling connection between commercial banks and Point of Sale (POS) operators, who seem to have unrestricted access to cash and charge exorbitant fees for withdrawals.

“Where do POS operators get their cash while banks remain dry?” he questioned.

The lawmaker cautioned that the situation could deteriorate further, especially with the festive season approaching, leaving businesses paralyzed and citizens facing heightened economic hardship.

In its resolution, the House directed the Committee on Banking Regulations to investigate the cash shortage in commercial banks and report back within one week. Additionally, it urged the CBN to take immediate action to resolve the scarcity if it is not directly responsible for the issue.

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