Follow the dominant scarcity of cash worsened, with banks lamenting of low cash supply from the Central Bank of Nigeria, CBN.
Customers were worst hit, as many of them find it really difficult to withdraw cash after visits to many bank branches and even ATMs.
After confirming the development, a bank customer who spoke on this “I habitually withdraw cash from ATMs during weekends, especially on Sundays due to reduced congestion.
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The bank's security men suggested checking back around noon.
"I then went to the nearby UBA branch on Ladipo St, but encountered the same issue—no cash in the ATMs. Despite visiting more than 12 different bank branches on Ladipo Street, including GTB, Fidelity, Access Bank, FirstBank, FCMB, Stanbic IBTC, Zenith Bank, and Keystone Bank, none of their ATMs were dispensing cash.
"I revisited the UBA Matori branch just after 12 noon, only to be informed that the situation remained unchanged. The same story unfolded at the UBA Ilupeju branch.
While driving from the Ilupeju area to Anthony, down to Gbagada, and back, I halted at every bank branch along my route. Each ATM I encountered was devoid of cash.
Stranded in my quest for cash, I persistently tried for more than three hours to obtain funds from the various banks I visited, yet my efforts were in vain. Faced with a lack of alternatives, I reluctantly turned to a mobile POS operator situated at a nearby petrol station for financial transactions.
During this frustrating ordeal, a senior bank official shed light on the root cause of the cash scarcity and rationing, attributing it to the inadequate cash supply from the Central Bank of Nigeria (CBN). Elaborating further, she revealed the stark changes in their ATM loading practices at her branch. In the past, they used to allocate approximately N8 million to each of their five ATMs. However, due to the current circumstances, they now load only one machine with N4 million, and at times as low as N2.5 million. The consequence is a rapid depletion of these reduced amounts within a mere one or two hours, highlighting the severity of the cash shortage affecting both customers and financial institutions alike.
A substantial proportion of the funds meticulously loaded into automated teller machines "ATMs" finds its origins in the diligent process of aggregating cash deposits made by our valued customers. This dominant modus operandi is a direct repercussions of cash supplied to us from our central hub. My contention revolves around the notion that the constrained supply from the hub is, in essence, a ripple effect stemming from challenges faced in securing adequate funds from the Central Bank of Nigeria (CBN).
In the context of recent events, it is imperative to recollect that, in response to widespread apprehensions about a shortage of cash, the CBN elucidated that the apparent currency scarcity was intricately linked to the substantial withdrawal activities of cash by deposit money banks (DMBs) from various CBN branches. The CBN went on to underscore that panic-induced withdrawals by customers of these banks played a contributory role in exacerbating the apparent shortage.
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In an official proclamation, the CBN articulated, "The attention of the CBN has been make known to reports of alleged scarcity of cash at banks, ATMs, Point of Sale (PoS) terminals, and Bureau de Change (BDC) outlets in some major cities across the country. Our meticulous look out reveal that the seeming cash scarcity in these locations is primarily attributed to the high-volume withdrawals executed by DMBs from the CBN branches and the concurrent panic withdrawals initiated by customers from the ATMs.
In light of the legitimate concerns voiced by the Nigerian populace regarding the accessibility of cash for their day-to-day financial transactions, it is imperative to affirm unequivocally that there exists a robust and sufficient stockpile of currency notes poised to underpin and support the ongoing economic activities throughout the country.
The Central Bank of Nigeria (CBN), as the custodian of the nation's monetary stability, is actively addressing these concerns. Through its extensive network of branches spanning the entire country, the CBN is diligently working to ensure the seamless circulation of cash within the various states under its jurisdiction. This concerted effort is aimed at guaranteeing that the financial ecosystem remains well-lubricated and capable of meeting the demands of economic transactions.
Emphasizing the need for prudence, the CBN advises the public against succumbing to panic-driven impulses to withdraw funds. It reiterates that the current inventory of currency notes is not only substantial but also more than sufficient to sustain the diverse economic activities across the nation. Furthermore, the CBN advocates for a shift in consumer behavior by encouraging Nigerians to adopt alternative modes of payment. This proactive step is designed to alleviate the strain on the physical cash infrastructure, promoting a more resilient and diversified financial landscape.
Stay tuned to the TalkTalkHub for continuous updates on the news surrounding this scarcity. We will keep you informed and updated as developments unfold.
