Business Owners Groan As Naira Scarcity Hits Banks

Some Nigerian banks have been hit with a cash drought as the scarcity of the naira frustrates business operations.

Businesses, especially petty traders are recording low sales because their unbanked customers who rely solely on cash transactions don’t have access to the cash.

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Nigerian banks are not left out of the ripple effect of the naira redesign policy of the Central Bank of Nigeria.

The cash crunch is being witnessed just two days to the February 10, 2023 deadline to withdraw the legal tender status of the old N1000, N500, and N200 banknotes.

It is also subject to a grace period of seven days which allows customers to deposit their money into their accounts through CBN branches.

Although the Supreme Court has stopped the CBN from enforcing the deadline, it is still unclear if the Federal Government and the CBN will adhere.

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A branch of Access Bank Plc in Gwarinpa has been hit with cash scarcity.

Customers who trooped in left the bank premises with frustration when they were told by the bank security, “we are short of cash”.

ATMs at the bank are dry of cash as customers wait and leave the bank disappointed.

Access Bank Branch, Gwarimpa

Some customers who found their way to the bank to withdraw cash over the counter were also disappointed when they received the same news that ” the bank is out of cash.”

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THE WHISTLER can report that this has made the bank to be paying cash withdrawals from the cash deposits made by customers which is a temporary measure to ameliorate the situation.

Speaking to THE WHISTLER, a staff member who pleaded anonymity said they have not received new supplies.

The member of staff explained that the bank has exhausted its cash supply and is waiting for a fresh supply.

“Our vault is empty. We have been out of cash since we exhausted the cash we were supplied. This situation is terrible and customers are grumbling,” she said.

A customer Tunde told THE WHISTLER that his wife who lives outside Abuja was in labour and he needed to travel to see her.

Tunde said he came very early on Wednesday waiting to withdraw from the ATMs but he was disappointed when he discovered the ATMs were empty.

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The bank branch has six ATM points but none of them were dispensing cash.

“I have even begged them to give me any amount so that I can go and see my wife who is in labour. I’m supposed to be with her by now but I can’t even withdraw to transport myself to see her,” Tunde lamented.

Access Bank Branch, Gwarimpa

Another customer, Bello, said he started waiting for the ATMs to begin dispensing cash before 6am.

Bello who is a POS merchant said his business was suffering the effect of the cash scarcity.

“I have been here (Access Bank branch in Gwarinpa) since 6am hoping that they will load money in the ATM machines. This is so frustrating. I run a POS business and I have been looking for cash to do business,” Bello said while waiting at 10:30am.

Precious, an Access Bank customer told THE WHISTLER that she has done several transactions over the week and most of the transactions failed.

Precious said, “The policy has exposed the incompetence of our banks. I came to ask why I can’t do transactions on my mobile app.

“They don’t have cash and I’m having difficulty doing online transactions. I have been debited several times during transactions with POS operators but they will tell me they have not received the alert.”

At Fidelity Bank branch on 1st Avenue in Gwarinpa, customers waited for cash from morning to 2:30pm but the bank gave no assurance that they will get cash.

The bank’s ATM machines were not also dispensing cash as at 15:00pm.

A customer, Hauwa who came for withdrawal said she has “been in the bank for over six hours with the hope that the bank will receive cash supply.”

A Fidelity Bank staff who pleaded anonymity told THE WHISTELR that she is also looking for cash.

Fidelity Bank Gwarimpa

“We are all waiting for cash. They have not supplied us. As it stands, we don’t even know when we will get cash,” she said.

The problem is not only peculiar to Access Bank and Fidelity Bank as banks like Zenith Bank Plc among others are suffering a similar fate.

Since the new notes came into circulation in December 2022, the CBN has only printed N300bn of the new N1000, N500, and N200 notes.

The CBN had said it has withdrawn N1.9trn of the old notes in circulation.

Experts have said the scarcity is connected to the amount printed by the CBN after it withdrew N1.9ten from the system.

But the CBN in the defense had explained that the decision is in line with its effort to promote a cashless policy and as well woo the unbanked Nigerians to open accounts or wallets.

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