Bank Staff Blame Central Bank For Escalating Cash Shortage Across Nigeria

Bank Staff Blame Central Bank For Escalating Cash Shortage Across NigeriaThe Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) has blamed the ongoing cash shortage in Nigeria on the Central Bank of Nigeria’s (CBN) failure to meet the cash demands of commercial banks. This shortage has been exacerbated as the festive season approaches, heightening the need for cash for shopping and business transactions.

In an interview with The PUNCH, ASSBIFI President, Olusoji Oluwole, stated that the scarcity has persisted since the redesign of the naira and continues to impact the banking system. According to him, banks rely on two primary sources of cash: the CBN and retailers. However, the CBN has failed to supply sufficient funds to banks, while some retailers are reportedly hoarding cash to sell for profit, further complicating the situation.

Oluwole emphasized that banks are unable to force retailers to return cash to the banking system, which has intensified the scarcity, particularly as the Christmas season draws near. He pointed out that the collective daily cash requirement for banks is around N20 million, with ATMs needing approximately N8 million and bank counters requiring N4 million.

He also called on the CBN to provide clearer statistics on cash circulation to improve distribution and reduce inefficiencies. “The solution is for the CBN to have clear statistics, so that they understand where cash is circulating and how to better distribute it,” he said.

In addition, Oluwole advocated for a shift toward a less cash-dependent economy, stressing that a cashless system is safer, cheaper, and more efficient. “An economy that operates in a cashless manner does better than a cash-dependent one. It’s a proven fact globally,” he asserted.

Oluwole also urged security agencies to crack down on illegal currency trading, noting that selling cash for profit is unlawful and should not be allowed. He called for investigations into reports of point-of-sale operators buying cash from fuel stations and supermarkets.

He concluded by reiterating that no bank deliberately withholds cash from its customers. “No bank wants to starve its customers of cash. It doesn’t make sense for any bank to hold on to cash, but you can only give what you have,” he explained.

As the cash crisis persists, stakeholders are urging the CBN to act swiftly to address the concerns and ease the strain on banks and the public.

Similarly, Emmanuel Onwubiko, the National Coordinator of the Human Rights Writers Association of Nigeria, criticized the CBN and its Governor, Olayemi Cardoso, for their mishandling of monetary policy. He held them responsible for the widespread hardship caused by the ongoing cash scarcity, particularly in rural areas where many people, including small businesses and daily wage earners, are unable to conduct transactions.

Onwubiko also highlighted the growing issue of long queues at banks and ATMs, with customers unable to access their funds despite having sufficient balances. He called on President Bola Tinubu to intervene urgently to stabilize the banking system and prevent further economic collapse. Additionally, he urged the National Assembly to hold the CBN Governor accountable through a thorough oversight process.

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