The ongoing cash shortage across Nigeria has reached a critical stage, with bank workers and rights groups attributing the crisis to the Central Bank of Nigeria’s (CBN) failure to meet the cash demands of commercial banks. As the festive season looms, concerns about the impact of the scarcity on businesses and households are growing.
The President of the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI), Olusoji Oluwole, expressed frustration over the shortage. Speaking to Hobnob News, he noted that banks are struggling to meet daily cash needs due to inadequate supply from the CBN.
“Since the naira redesign policy, the cash scarcity issue has persisted,” Oluwole said. He explained that banks rely on two main sources of cash: the CBN and retailers. However, with limited inflows from retailers and insufficient disbursement from the apex bank, the cash supply chain remains strained.
Oluwole provided insights into the operational challenges faced by banks, highlighting that they collectively require at least N20 million daily to function effectively. Automated Teller Machines (ATMs) alone demand about N8 million daily, while bank counters need an additional N4 million.
Call for Transparency and Cashless Economy
The ASSBIFI President stressed the need for transparency from the CBN, urging it to provide clear statistics on cash circulation. Such data, he argued, would help banks streamline distribution and meet public demand.
“We need solutions, not trading blame,” Oluwole said. “A proper understanding of cash flow and circulation is essential for addressing the problem.”
Advocating for a long-term solution, he called for a shift toward a cashless economy, citing global examples where digital transactions have proven more cost-effective and secure. “An economy that operates in a cashless manner thrives better than one dependent on cash. It is a proven fact globally,” he said.
Security Concerns and Illegal Currency Trading
Oluwole raised concerns over illegal currency trading, where cash is reportedly sold at discounted rates by point-of-sale operators, fuel stations, and supermarkets. “This practice is unacceptable and undermines the integrity of our monetary system,” he stated, urging security agencies to take decisive action.
He also dismissed claims that banks deliberately withhold cash from customers. “No bank benefits from starving its customers of cash. It’s simply not in their interest,” he added, emphasizing the need for collaborative efforts to resolve the crisis.
Human Rights Group Criticizes CBN Leadership
The Human Rights Writers Association of Nigeria (HURIWA) also weighed in on the issue, holding the CBN and its Governor, Olayemi Cardoso, responsible for the worsening situation. In a statement, HURIWA’s National Coordinator, Emmanuel Onwubiko, described the crisis as a failure of monetary policy, which has exacerbated poverty and economic hardship, especially in rural areas.
“Small businesses, artisans, and daily wage earners are among the hardest hit,” Onwubiko said, highlighting the plight of millions who cannot access cash despite having sufficient account balances. Long queues at banks and ATMs, he noted, have become a daily reality for Nigerians.
Onwubiko called on President Bola Tinubu to intervene urgently, warning that the situation could spiral into an economic collapse if left unaddressed. He also urged the National Assembly to summon the CBN Governor for accountability, demanding oversight into the apex bank’s handling of the crisis.
Way Forward
As the cash crunch persists, stakeholders are calling for immediate reforms to stabilize the financial system. Transparency in cash distribution, a crackdown on illegal currency trading, and a concerted push toward a cashless economy have been highlighted as key steps.
The Nigerian public and banking sector await decisive action from the CBN and federal government to restore normalcy and ease the strain on the economy.
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