Banks receive more cash, raise withdrawal limits to reduce queues, avert Labour strike
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In a bid to avert the scheduled strike by the Nigeria Labour Congress (NLC) on Wednesday, March 29, 2023, the Central Bank of Nigeria (CBN) has flooded the economy with more cash after a prolonged cash crunch that has made life difficult for millions of Nigerians.
News Band had reported that NLC leadership issued a seven-day ultimatum to the Federal Government to end the naira scarcity in the country, failure of which it will embark on indefinite strike.
The labour union threatened to go on strike if the federal government and CBN do not resolve the issue at the expiration of the ultimatum.
NLC President, Joe Ajaero, gave the ultimatum last week in Abuja at the opening session of the Central Working Committee meeting of the labour union.
Ajaero had frowned at the hardship being faced by Nigerians following the naira redesign policy and warned that on the expiration of the seven days, workers would be directed to stay away from work.
Reacting to the looming strike, CBN released more old notes to Deposit Money Banks and stepped up efforts to ensure disbursement of same.
Last week, it began the release of billions of naira to DMBs and ordered banks to work on Saturdays and Sundays in the meantime.
In compliance, several branches of banks opened over the weekend and dispensed cash to their customers via Automated Teller Machines and over-the-counter.
Customers, who were seen at banks’ ATM galleries, continued to receive naira notes on Sunday while others tried to perform over-the-counter transactions.
Some of the banks had sent out emails to their customers notifying them that they would be open over the weekend for banking operations as ordered by the apex bank.
It was observed, however, that the banks were not dispensing crispy new naira notes and customers didn’t care as long as they got the cash.
Also, both old and new naira notes were dispensed.
Banks raise cash withdrawal limits to reduce queues
Deposit Money Banks have raised their cash withdrawal limits from the current N20,000 to N50,000 range to over N80,000 to N100,000, according to multiple bank officials.
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The move, it was learnt, would help bank branches to tackle lingering queues in some cities across the country.
This came after the CBN began the release of billions of old naira notes to DMBs. The central bank on Thursday finally obeyed the Supreme Court on the legal status of the old naira notes after months of controversy that trailed the naira redesign policy.
According to findings, most DMBs currently pay between N20,000 and N50,000 over-the-counter and Automated Teller Machines.
However, it was learnt that banks were planning to raise the limits to enhance currency circulation and put a permanent end to queues in banking halls and ATM galleries.
Customers had on Monday thronged banking halls and ATM galleries to get cash despite the banks working throughout the weekend.
Visits to several bank branches in Lagos, Abuja, Ogun State and other cities revealed that customers in their numbers converged on bank premises to withdraw cash.
At the Federal Capital Territory, Abuja, bank customers were able to access cash with less stress.
A visit to various bank branches showed that the queues at banking halls and ATM galleries had reduced. Read more.
