The House of Representatives has raised an alarm over the persistent cash scarcity plaguing commercial banks across Nigeria, urging the Central Bank of Nigeria (CBN) to take immediate corrective measures.
This call to action was made during a session in the green chamber, where lawmakers expressed deep concern about the economic and social ramifications of the ongoing cash crunch.
In a motion presented under Matters of Urgent Public Importance by Representative Uguru Emmanuel, the House highlighted the severe impact of the cash shortage on consumer spending and business investments.
"Entrepreneurs and individuals are subjected to long queues, sometimes spending days at banks without success," Emmanuel lamented, emphasizing the plight of rural communities that depend heavily on cash transactions due to limited access to digital payment systems.
The cash scarcity is reportedly exacerbated by the CBN's policy directive from December 21, 2022, which set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities. However, many commercial banks have allegedly flouted these guidelines, restricting withdrawals to as little as N10,000 or none at all.
Adding to the complexity of the situation, there are growing suspicions of collusion between banks and Point of Sale (POS) operators.
These operators appear to have unrestricted access to cash, often selling it at exorbitant rates. "Where do POS operators get their cash from while banks remain dry?" Emmanuel queried, pointing to a potential systemic issue that requires urgent investigation.
In response to these concerns, the House has mandated its Committee on Banking Regulations to investigate the cash crunch and report back within one week.
Furthermore, they have directed the CBN to urgently address the scarcity, warning that failure to act could lead to heightened economic hardship, especially with the festive season approaching.
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