With Nigerians facing bleak Christmas celebration as a result of cash shortage from the banks, the Association of Senior Staff of Banks, Insurance, and Financial Institutions, ASSBIFI has exonerated the banks in the predicament.
The association, however, attributed the worsening cash shortage across the country to the Central Bank of Nigeria, CBN’s inability to meet the cash demands of commercial banks.
This was disclosed by ASSBIFI President, Olusoji Oluwole, while speaking to The PUNCH.
He highlighted the dire impact of the scarcity, particularly as the festive season approaches, with increased demand for cash for shopping and business transactions.
Oluwole said, “In terms of (the cash) scarcity, this is something that has not ended since the redesign of the Naira.”
According to the ASSIBFI President, the banks have only two primary sources of cash – the CBN and retailers.
“Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands. And retailers often sell cash for profit, making it harder for banks to access funds,” Olowole explained.
The ASSIBFI President noted that the CBN, has failed to meet the cash demands of banks. While retailers profit by selling cash instead of depositing it back into the banking system.
He said, “But, of course, it is beginning to become more pronounced now that we’re heading towards the Christmas celebrations. Where a lot of people are going to need money to carry out their shopping and other businesses.
“Banks are not in a position to force retailers to bring the cash to the banks.”
“And this dynamic exacerbates the scarcity of cash in Automated Teller Machines, ATM, and across bank counters,” he said.
Oluwole, therefore, revealed that banks collectively require at least N20m daily to operate. With the ATMs needing approximately N8m each and N4m over the counters.
The ASSIBFI President emphasized the importance of the CBN providing clear statistics on cash circulation. He noted that this will help to improve distribution efficiency.
“For us, we are not interested in trading games like we were doing last year but looking for solutions.
“The solution, one, is for CBN to have clear statistics. So that they understand where they are. How they are circulating, and where they are circulating to,” Oluwole said.
The ASSIBFI President, however, advocated for a shift towards less dependency on cash. He stressed the point that a cashless economy is cheaper, safer, and more efficient for the economy.
“An economy that operates in a cashless manner does better than a cash-dependent economy. It is a proven thing all over the world,” he stated.
Oluwole also called for security agencies to crack down on illegal currency trading across the country.
He said, “You cannot be selling cash. You cannot sell your currency to people for a profit at discounted rates. It is not done anywhere.”
The ASSIBFI President therefore, urged authorities to investigate reports of Point-Of-Sale operators buying cash from fuel stations and supermarkets.
Oluwole, therefore, exonerated the banks, saying that no bank deliberately withholds cash from its customers.
“No bank wants to starve its customers of cash. It does not make sense for any bank to hold on to cash. But you can only give what you have.”
“As the cash crisis persists, stakeholders are urging the CBN to act swiftly to address these concerns. And to alleviate the strain on both banks and the public,” Oluwole stated.
Speaking in the same light, the National Coordinator of the Human Rights Writers Association of Nigeria, Emmanuel Onwubiko, berated the Central Bank for the crisis.
Onwubiko accused the CBN and its Governor, Olayemi Cardoso, for their mishandling of monetary policy. He, therefore, asked Nigerians to hold the apex bank responsible for the resulting widespread cash scarcity.
The coordinator further highlighted how cash scarcity has left millions, especially in rural areas vulnerable. He noted that they are unable to conduct transactions. And that the scarcity has pushed small businesses, artisans, and daily wage earners deeper into poverty.
“Nationwide, long bank and ATM queues have become the norm, with depositors unable to access their funds despite sufficient balances,” he added.
Onwubiko argued that the crisis reflects not just poor monetary policy but also deeper systemic issues within Nigeria’s economy.
He, therefore, urged President Bola Tinubu to intervene swiftly to stabilize the banking system and avert economic collapse.
source: Punch
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