The Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI), has blamed the growing cash scarcity in Nigeria on the Central Bank of Nigeria’s (CBN) inability to meet the cash demands of commercial banks.
The persistent cash crunch has raised frustrations nationwide, with many Nigerians struggling to access cash for day-to-day activities.
President of the association, Mr. Olusoji Oluwole, noted the dire impact of the scarcity, more especially, as the festive season draws near, with increased demand for cash for shopping and business transactions.
“In terms of (the cash) scarcity, this is something that has not ended since the redesign of the naira,” Oluwole said.
He stated that banks have only two principal sources of cash: the CBN and retailers.
“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,” he explained.
He mentioned that the apex bank has failed to meet the cash demands of banks, while retailers profit by selling cash instead of depositing it back into the banking system.
“But, of course, it is beginning to become more pronounced now that we’re heading towards the Christmas celebrations, where a lot of people are going to need money to carry out their shopping and other businesses.
“Banks are not in a position to force retailers to bring the cash to banks,” he added, describing how this ugly trend escalates the scarcity of cash in automated teller machines and across bank counters.
Speaking further, Oluwole called for a reduction in reliance on cash, stating that a cashless economy is cheaper, safer, and more efficient for the economy.
“An economy that operates in a cashless manner does better than a cash-dependent economy. It is a proven thing all over the world,” he stated.
He urged security agencies to crack down on illegal currency trading.
“You cannot be selling cash. You cannot sell your currency to people for a profit at discounted rates. It is not done anywhere,” Oluwole emphasised.
He encouraged authorities to look into reports of point-of-sale personnel buying cash at petrol stations and supermarkets.
Oluwole added by saying that no bank purposely withholds cash from its consumers.
“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,” he said.
“As the cash crisis persists, stakeholders are urging the CBN to act swiftly to address these concerns and alleviate the strain on both banks and the public”.
