The Association of Senior Staff of Banks, Insurance, and Financial Institutions, ASSBIFI, have attributed the unabated cash shortage across the country to the Central Bank of Nigeria’s, CBN failure to meet up with cash demands of commercial banks.
ASSBIFI President, Olusoji Oluwole, made this known yesterday as the festive season approaches, with increased demand for cash for shopping and business transactions the general public are being apprehensive as transactions may slow down.
Oluwole said “In terms of (the cash) scarcity, this is something that has not ended since the redesign of the naira”.
Oluwole explained that banks have only two primary sources of cash – the CBN and retailers, and the apex bank has to make supply available for retailers to have access.
“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,” he explained.
He revealed that the apex bank could not meet up with the cash demands of banks, while retailers profit by selling cash instead of depositing it back into the banking system.
“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 banks,” he added, describing how this dynamic exacerbates the scarcity of cash in Automated Teller Machines and across bank counters.
Making reference to statistics, Oluwole disclosed that banks collectively require at least N20m daily to operate, with ATMs needing approximately N8m each and N4m over the counters.
Therefore, the CBN have to be armed with clear statistics of money in circulation for effective usage.
“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,” he said.
Although, he advocated for a shift away from cash dependency, stressing 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.
He faulted the idea of selling currency to Nigerians saying “You cannot be selling cash. You cannot sell your currency to people for a profit at discounted rates. It is not done anywhere,” Oluwole emphasised.
He called on the authorities to investigate the allegation of Point of Sell Operators buying cash from filling stations for a price, while absolving the banks from withholding cash deliberately.
“As the cash crisis persists, stakeholders are urging the CBN to act swiftly to address these concerns and alleviate the strain on both banks and the public,” Oluwole stated.
In a similar manner, the National Coordinator of the Human Rights Writers Association of Nigeria, Emmanuel Onwubiko, has criticised the CBN and its Governor, Olayemi Cardoso, for their mishandling of monetary policy, holding them responsible for the resulting widespread hardship.
He lamented how cash scarcity has left millions, especially in rural areas, unable to conduct transactions, pushing small businesses, artisans, and daily wage earners deeper into poverty.
Onwubiko said that “Nationwide, long bank and ATM queues have become the norm, with depositors unable to access their funds despite sufficient balances”.
Meanwhile, the group have called on the National Assembly to summon the CBN Governor for accountability and oversight.
