Reps Urge CBN to Tackle Ongoing Cash Scarcity
The House of Representatives has raised concerns over the persistent cash scarcity in commercial banks across Nigeria, calling on the Central Bank of Nigeria (CBN) to resolve the issue that has caused significant hardship for Nigerians.
In a motion presented by Uguru Emmanuel under Matters of Urgent Public Importance, the House highlighted the severe economic and social consequences of the cash shortage, which has left many citizens unable to access funds for essential needs.
Emmanuel emphasized that consumer spending and business investment are vital for economic growth, but the ongoing cash shortage is hindering these activities. He recalled the CBN’s December 21, 2022 policy that set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities. However, he noted that commercial banks have largely ignored this policy, with some limiting withdrawals to as low as N10,000 or even none at all.
The lawmaker also pointed out the struggles faced by individuals and entrepreneurs, especially in rural areas, who depend on cash for transactions but lack access to digital payment options. He raised concerns about the link between commercial banks and Point of Sale (POS) operators, who appear to have unrestricted access to cash, often selling it at inflated prices.
Emmanuel warned that unless the CBN takes swift action, the situation could worsen, particularly with the upcoming festive season, deepening economic hardship for businesses and citizens alike.
In response, the House resolved to mandate the Committee on Banking Regulations to investigate the cash shortage in commercial banks and report its findings within one week. The CBN was also urged to address the scarcity or clarify if it is not the source of the problem.
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