The House of Representatives on Tuesday expressed concern over the persistent cash scarcity affecting commercial banks across the country, urging the Central Bank of Nigeria (CBN) to take immediate action to alleviate the crisis, which has severely disrupted economic activities and caused widespread hardship.
The call followed a motion of urgent public importance moved by Hon. Uguru Emmanuel, who highlighted the far-reaching economic and social consequences of the cash shortage.
In his presentation, Hon. Emmanuel described the crisis as a major impediment to economic growth, noting that consumer spending and business investment—key drivers of economic activity—have been significantly hampered.
He recalled the CBN’s December 21, 2022, policy directive, which set cash withdrawal limits of ₦500,000 for individuals and ₦5 million for corporate entities. However, he observed that commercial banks have frequently failed to comply with the directive, often restricting cash withdrawals to as little as ₦10,000 or, in some cases, offering no cash at all.
“Entrepreneurs and individuals are forced to endure long queues, sometimes spending days at bank branches without accessing cash,” he stated. “The situation is particularly dire for rural communities, where cash transactions are prevalent, and digital payment systems are largely unavailable.”
Hon. Emmanuel also raised concerns over the apparent disparity between commercial banks and Point of Sale (POS) operators, who seem to have unlimited access to cash despite the scarcity in banks. He questioned the source of the cash, noting that POS operators often sell it at exorbitant rates.
“Where do POS operators get their cash while banks remain cash-strapped?” he queried.
The lawmaker warned of the potential escalation of the crisis as the festive season approaches, which could further disrupt business operations and deepen economic difficulties for citizens.
In its resolution, the House directed its Committee on Banking Regulations to investigate the causes of the cash crunch and submit a report within one week. It also called on the CBN to address the cash shortage urgently, particularly if it is not directly responsible for the issue.
This development underscores the urgency of the situation and the need for decisive action to restore normalcy to the nation’s banking system and alleviate the financial strain on Nigerians.
Comments