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0 News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/nigerians-struggle-with-severe-cash-shortage-as-atms-remain-empty-pos-fees-surge/
As 2024 draws to a close, Lagos residents are grappling with a severe cash shortage that has rendered many Automated Teller Machines (ATMs) across the city out of service.
With the festive season in full swing, the lack of accessible cash has forced residents to rely on Point of Sale (PoS) operators, who have capitalized on the scarcity to impose steep fees for cash withdrawals.
Reports from various banks reveal a dire situation: customers are being turned away due to a shortage of cash, and those who are able to withdraw funds are limited to amounts between $13 and $26. Despite previous warnings from the Central Bank of Nigeria (CBN) threatening penalties for banks not dispensing cash, the situation remains unresolved, and the scarcity continues to disrupt daily life in Lagos.
Bright Joseph, a frustrated Lagos resident, expressed his dismay at the situation: “It’s been frustrating. I’ve gone to three different banks today, and none of them has cash to give. How are we supposed to celebrate the season like this?”
With no immediate relief in sight, residents have turned to PoS operators, who have raised their fees in response to the growing demand. A typical withdrawal of $6.50 now incurs a fee of $0.65, a sharp increase from the $0.13 or $0.26 that customers were paying just a few months ago. Larger withdrawals come with even higher charges, further burdening residents who have no alternative but to pay the inflated fees.
Benjamin Idowu, a civil servant in Ogba, shared his frustration: “I had to withdraw $13 yesterday, and the PoS operator charged me $1.30. It’s unfair, but what can I do? I needed the cash.” For many Nigerians, cash remains a vital means of conducting daily transactions such as transportation, food, and small purchases, making the ongoing shortage particularly disruptive.
The cash crisis has prompted many to point fingers at the CBN, accusing the central bank of failing to release enough cash to meet the growing demand. An anonymous official from a tier-2 bank explained that the CBN had significantly reduced cash disbursements to banks, coupled with a drop in customer deposits. As a result, banks have struggled to meet the withdrawal needs of their customers.
While some suspect a collusion between banks and PoS operators to create an artificial scarcity, operators have denied such claims. Olawale Michael, a PoS operator in Ikeja, explained: “In the last two months, I have not withdrawn from the bank. My cash comes from market women and shop owners who prefer us to handle their deposits.”
Another operator, Mrs. Nkechi, shared that she sources her cash from a nearby fuelling station, paying extra for the service, which she then passes on to her customers. “If I could withdraw from the bank, the charges would be normal. But since I have to pay extra to get cash, I have to adjust my rates,” she said.
In September, the CBN had announced plans to sanction banks failing to ensure cash availability at ATMs. Governor Yemi Cardoso assured the public that a monitoring system would be put in place to ensure compliance. However, as of now, no bank has been penalized, and the ATMs remain empty, leaving Nigerians to face the fallout from the ongoing cash shortage.
The cash crisis is further exacerbated by the looming holiday season, with many residents scrambling to access funds for celebrations and daily needs. As the New Year approaches, Nigerians continue to endure the brunt of this financial inconvenience, with no immediate end to the crisis in sight.
The situation has raised questions about the CBN’s ability to manage the country’s currency flow, especially as the central bank continues to push for greater digitization of financial services, which may not be a viable alternative for many in a country where cash still plays a dominant role in everyday transactions.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/nigerians-struggle-with-severe-cash-shortage-as-atms-remain-empty-pos-fees-surge/
