Bank Workers Blame CBN as Cash Shortage Worsens
The Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) has attributed Nigeria’s worsening cash shortage to the Central Bank of Nigeria’s (CBN) failure to meet the cash demands of commercial banks.
Speaking with The PUNCH, ASSBIFI President Olusoji Oluwole highlighted the challenges faced by banks, particularly as demand for cash surges ahead of the festive season. He noted that the scarcity, which began with the naira redesign policy, has persisted, exacerbating hardships for businesses and individuals alike.
“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,” Oluwole explained.
He criticized the CBN’s inability to provide sufficient cash to banks, emphasizing that banks collectively require at least N20 million daily to operate, with ATMs needing about N8 million each and N4 million over the counters.
Oluwole also called for clear statistics on cash circulation to enable efficient distribution, urging the CBN to improve transparency and coordination. “For us, we are not interested in trading games like last year but looking for solutions,” he said.
While advocating for a shift towards a cashless economy, Oluwole stressed that such an approach is cheaper, safer, and more efficient. However, he condemned illegal cash trading, calling on security agencies to crack down on point-of-sale operators and retailers profiting from selling cash.
“No bank wants to starve its customers of cash. It does not make sense for any bank to hold on to cash, but you can only give what you have,” Oluwole added.
The crisis has drawn criticism from other stakeholders, including the National Coordinator of the Human Rights Writers Association of Nigeria (HURIWA), Emmanuel Onwubiko, who blamed the CBN and its Governor, Olayemi Cardoso, for what he described as poor monetary policy.
Onwubiko noted that the cash scarcity has left millions, especially in rural areas, unable to conduct basic transactions, pushing small businesses, artisans, and daily wage earners further into poverty. “Nationwide, long bank and ATM queues have become the norm, with depositors unable to access their funds despite sufficient balances,” he said.
He urged President Bola Tinubu to intervene urgently to stabilize the banking system and prevent further economic hardship. HURIWA also called on the National Assembly to summon the CBN Governor for accountability and oversight.
As the cash crisis continues, pressure mounts on the CBN to address these concerns swiftly to alleviate the strain on banks and the public.
