The House of Representatives has called on the Central Bank of Nigeria (CBN) to resolve the ongoing cash shortage in commercial banks, which is disrupting economic activities and causing severe hardship for Nigerians.
This resolution followed the adoption of a motion of urgent public importance moved by Hon. Uguru Emmanuel from Ebonyi State during plenary on Tuesday.
In presenting the motion, Emmanuel highlighted the far-reaching economic and social consequences of the cash scarcity, noting that many citizens are struggling to access funds even for essential needs. He emphasised that economic growth depends on consumer spending and business investment, both of which are being hampered by the persistent cash shortage.
Emmanuel reminded lawmakers of the CBN’s December 21, 2022, policy directive, which set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities. However, he pointed out that commercial banks have largely failed to adhere to this policy, frequently restricting cash withdrawals to amounts below N10,000 or, in some cases, denying withdrawals entirely.
He expressed worry that; “Entrepreneurs and individuals are subjected to long queues, sometimes spending days at banks without success. This situation has particularly affected rural dwellers who rely on cash for transactions and lack access to digital payment systems.“
The lawmaker also expressed concern over the apparent disconnect between commercial banks and point-of-sale (POS) operators. He noted that POS operators appear to have unrestricted access to cash, which they often sell at exorbitant rates, further exacerbating the financial strain on citizens.
“Where do POS operators get their cash from while banks remain dry?” he queried, warning that unless the CBN takes immediate action, the situation could worsen, especially with the festive season approaching, leaving businesses frustrated. Citizens plunged into more profound economic hardship.
Following the adoption of the motion, the House directed the Committee on Banking Regulations to investigate the cash shortage in commercial banks and submit a report within one week.
