Cash scarcity has continued to persist across Nigeria, even as recently released data from the Central Bank of Nigeria (CBN) shows that the total volume of cash in circulation is at an all time high of N4.6 trillion as of November 2024.
According to CBN’s data made available to 9am News Nigeria, currency in circulation increased from N4.3 trillion recorded in September 2024 to N4.6 trillion in November 2024.
Despite this unprecedented high volume of cash in circulation, Nigerians continue to grapple with difficulties accessing cash. Most banks across the country have imposed limits on withdrawals while Automated Teller Machines (ATMs) fail to dispense.
Many customers have reported feeling distressed from being unable to withdraw their desired amounts of cash, with some customers accusing the banks of deliberately limiting the disbursement of cash in order to make illegitimate gains selling them to currency hawkers.
Edet Abasi, a customer at a Tier-1 banks recounted his frustrating experience, describing how he was unable to withdraw cash more than N5,000 when he needed N20,000.
“First and foremost, the bank has six ATMs, but there’s always no cash in them. Customers are forced to enter the banking hall for transactions, but when I approached the counter to withdraw the N20,000, the cashier refused to grant my request.”
“Shockingly, the cashier told me I could only get N5,000. It felt deeply frustrating. I can’t imagine a bank forcefully limiting me to N5,000 when I needed only N20,000 out of the several thousands sitting in my account.”
According to Mr. Abasi he tried explaining his predicament to the cashier and other staff of the bank but they remained unrelenting.
“They stuck to their guns and I left the bank very disappointed. So the following day I transferred most of my funds in that bank to another bank, leaving just a small amount in the account because I didn’t want to close it entirely,” Abasi explained.
Another customer narrated a similar experience at another Tier-1 bank. He explained that he need N100, 000 but was told he could only get N20,000.
“I told them this can’t happen; I want N100,000 from my money. After the cashier consulted her superior and I was offered N50, 000, but I refused. Eventually, the bank agreed to release the N100,000 but only in N200 denominations. I refused the offer as well and after further negotiations, we finally settled for N50,000 in higher denominations, which I reluctantly accepted.”
The CBN has responded to the cash scarcity situation by imposing a fine of N150 million on Deposit Money Banks (DMBs) found guilty of facilitating the illicit flow of new Naira banknotes (common known as Mints) to currency hawkers and unscrupulous economic agents.
This was outlined in a circular dated 13 December 2024, issued by CBN’s acting director of currency operations, Solaja Mohammed J. Olayemi. The circular made reference to an earlier notice issued on 13 November, 2024, and expressed CBN’s disappointment with the ongoing commodification of Naira banknotes. The CBN noted that the outright sale of banknotes is an illicit practice that impedes the efficient distribution of cash to customers and the general public, hurts the economy, and undermines the integrity of the country’s currency management system.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
