Cash Scarcity Hits Kaduna, Kano, Katsina, Residents Raise Alarm
As the festive season approaches, residents of Kaduna, Kano, and Katsina States are grappling with a severe cash shortage, sparking frustration and urgent calls for intervention. With just weeks until Christmas and New Year celebrations, accessing cash has become a daunting task, reminiscent of the struggles experienced during last year’s yuletide season.
In Kaduna, Point of Sale (POS) operators lamented that banks were limiting cash withdrawals to N20,000 or less, leaving them unable to meet customer demand. Many operators reported sourcing cash from alternative means at a premium, which in turn has doubled transaction charges. A vendor, Adamu Amadu, noted the steep rise in service fees, saying, “We used to charge N100 per N10,000, but now it’s N200, and even that runs out fast.”
Customers, meanwhile, voiced their discontent with high POS charges and long treks to find functional ATMs. Bilkisu Moda shared her frustration after visiting multiple POS centers without success, eventually withdrawing cash from an ATM after significant effort.
In Kafanchan, POS operators and residents echoed similar grievances. Business owners like Felicia Christopher reported losses, while civil servants like Nathaniel Bawa decried the annual recurrence of cash shortages, urging the government to resolve the crisis before it disrupts festivities further.
Zaria has also been hit hard, with merchants and POS operators describing the scarcity’s impact on grain trading and other businesses. Many merchants now rely on partners for cash, but accessing funds from banks remains difficult. A trader, Malam Bilyaminu Musa, emphasized how limited cash availability was stifling large-scale transactions despite high demand for grains from both local and international buyers.
Kano residents reported long queues at ATMs and challenges paying for goods and services. Aliyu Yakubu described the inconvenience of visiting multiple ATMs without success, while civil servant Aisha Ali expressed frustration over the inability to withdraw her hard-earned money for essential purchases.
In Katsina, similar scenes unfolded, with residents describing empty ATMs, restricted cash withdrawals, and inflated POS charges. One POS operator disclosed that banks were now charging them exorbitant fees, forcing them to increase customer charges. Residents like Tukur Hamza, who relied on POS services, found themselves struggling as the shortage deepened.
The Vice President of Nigeria, Kashim Shettima, has urged banks to ensure cash availability to alleviate the challenges faced by citizens. Speaking at the 2024 Bankers’ Committee Retreat, he highlighted the exploitation by rogue POS agents and called for the sector’s regulation to enhance financial inclusion.
Efforts by the Central Bank of Nigeria (CBN) to monitor and address the actions of commercial banks are reportedly underway. However, residents remain skeptical, urging immediate action to restore normalcy before the festive period is overshadowed by financial strain.
