Banks limit withdrawal from ATM as naira scarcity worsens
Banks limit withdrawal from ATM as naira scarcity worsens
People living in Lagos, Abuja, Kano, Katsina, Jigawa, and Adamawa, as well as other parts of Nigeria, are facing concerns about difficulties withdrawing large amounts of cash from their bank ATMs. This has raised worries about a potential scarcity, echoing past experiences during a period of currency shortage in the country.
The impact of this situation has been felt in local markets, especially in northern Nigeria, where cash transactions between buyers and sellers are preferred over bank transfers. Traders from different regions, particularly in the South West and the northern parts of the country, have expressed frustration over the limitations of withdrawing substantial sums of money from their local ATMs.
Reports indicate that merchants coming from towns to buy goods in markets are finding themselves in a tight spot as intermediaries struggle to acquire cash for them. Additionally, Point of Sale (POS) operators have also confirmed a shortage of cash, adding to the challenge.
Some individuals have speculated that the federal government might have reduced the available cash in circulation, although this has not been officially confirmed. Statements from the Central Bank of Nigeria (CBN) attribute the cash scarcity to significant withdrawals from CBN branches by Deposit Money Banks (DMBs) and panic withdrawals from ATMs by customers.
Addressing public concerns, the CBN assured that there is enough currency available for economic activities in the country. They emphasized that branches across Nigeria are actively working to ensure smooth cash circulation in their respective states.
Notably, the CBN had previously announced that both old and newly redesigned banknotes would remain legal tender until December 31, as mandated by the Supreme Court. In a recent statement, the CBN reiterated that all banknotes issued by them are legal tender and should not be refused, as stipulated in the CBN Act of 2007.
The CBN directed its branches to continue supplying various denominations of old and redesigned banknotes to deposit money banks, ensuring an adequate supply for customers. Despite the reassurance of sufficient banknotes, the situation has prompted concerns among citizens relying on accessible cash for their daily transactions.