…Probe cash scarcity

The House of Representatives has mandated its Committee on Banking Regulations to investigate the scarcity of cash in commercial banks in the country.

It also directed the Central Bank of Nigeria (CBN) to immediately address cash scarcity in commercial banks, if it is not responsible for the challenge.

This followed the adoption of a motion by Emmanuel Uguru on the urgent need to address the hardship caused by cash crunch in commercial banks in Nigeria.

Uguru, in the motion, informed the House that of late, there has been scarcity of cash in the country. He stated the development has serious consequences on individuals and the country’s economy.

The lawmaker recalled that “on December 21, 2022, the Central Bank of Nigeria 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to N500,000 and N5,000,000 for individuals and corporate entities respectively, and which is not known to have been repealed.” However, he argued that the commercial banks are not complying with the circular, noting that even current account holders cannot get N50, 000 cash from banks presently.

“The cash crunch in commercial banks in the country has become a clog in the wheel of economic activities.” 

Uguru noted that entrepreneurs were subjected to long queues in banks, with loss of several man-hour only to get N10, 000 cash.

“This, therefore, causes untold hardship to this uninformed populace, most of whom are rural dwellers we are representing, hence, this cry to protect their interest, as lives could even be lost for lack of funds (cash) to take their sick ones to hospital and sometimes nothing to buy food with.

“While the commercial banks have no money to dispense, the POS operators have in their disposal up to N1 million in mint to sell to their cronies and the public, and the pertinent question is; where do they get the money from?

“If the Central Bank of Nigeria continues to starve commercial banks of cash, especially as we approach the yuletide season, many people and even businesses will be frustrated and people plunged into untold hardship.”