Address Cash Crunch – Reps Urges CBN

The House of Representatives on Tuesday, directed the Central Bank of Nigeria (CBN) to address the challenge of cash crunch in several commercial banks across the country.

In the past few weeks, ATMs have been dispensing between N5,000 to N10,000 only.

This has left many Nigerians at the mercy of Point of Sales operators.

Taking advantage of the gap in the financial system, the PoS operators have resorted to charging higher rates across major towns and cities in the country.

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On Tuesday, the House during plenary adoption a motion of urgent public importance was moved by the member representing Abakiliki/Izzi Federal Constituency, Ebonyi State, Emmanuel Uguru.

According to Uguru, cash supply shortages in commercial banks have dire consequences on individuals and the nation’s economy.

He noted that on December 21, 2022, “The CBN by a policy contained in a circular number BSD/DIR/PUB/LAB/015/073 reviewed the cash withdrawal limits across all channels to N500,000 and N5m for individuals and corporate entities respectively, and which is not known to have been repealed.

The House is concerned that the commercial banks in the country have jettisoned this policy as they can hardly give N50,000 to even current account holders.

“The House is disturbed that the cash crunch in commercial banks in the country has become a clog in the wheel of economic activities, as entrepreneurs are subjected to long queues and sometimes spend a whole day or two in the bank.

“This results in a loss of man-hours only to get N10,000 and in most cases go back home with nothing, subjecting this class of persons who have no access to POS that is mostly not applicable in some articles of trade especially in the rural areas to hopelessness. This causes untold hardship to this uninformed populace most of whom are rural dwellers we are representing.”