Residents in multiple states across the country are grappling with a shortage of fresh cash, causing widespread frustration and disruptions.
The scarcity has led to challenges in accessing money, with ATMs in several states no longer dispensing cash and banks imposing restrictions on over-the-counter withdrawals. Long queues have formed at the limited ATMs with available cash, impacting day-to-day activities and businesses.
States such as Ondo, Edo, Kwara, Delta, Lagos, Plateau, Jigawa, Kaduna, and Osun are among those affected.
In some instances, banks in these states have rationed cash, leading to varying withdrawal limits for customers.
The situation has forced some point-of-sale (POS) operators to close temporarily, while others have increased withdrawal charges.
The cash scarcity issue is not uniform across all states, with reports indicating that banks in Anambra, Ogun, Katsina, Bayelsa, Niger, Akwa-Ibom, and Benue are unaffected, providing services without conditions.
The Central Bank of Nigeria (CBN) attributes the scarcity to uneven cash flow dynamics, uncertainty over old naira notes, and increased withdrawals ahead of the holidays.
The CBN urges Nigerians to adopt digital payment options and assures collaboration with commercial banks to ensure adequate cash circulation.
The recent Supreme Court verdict on November 29, 2023, declared that old and new naira notes will coexist as legal tender until further notice, easing concerns over the phasing out of old notes initially set for December 31, 2023, NN News Media recalled.
The current cash scarcity situation triggers memories of a previous episode linked to the controversial naira redesign and cashless policy implemented by the former CBN Governor, Godwin Emefiele, during the buildup to the 2023 general elections.
Nigerians faced acute cash shortages as they grappled with the transition from old to new naira notes, impacting businesses and economic activities.
