The Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) has attributed the worsening cash shortage across the country to the Central Bank of Nigeria’s (CBN) inability to meet the cash demands of commercial banks.
ASSBIFI President, Olusoji Oluwole, highlighted the dire impact of the scarcity, particularly as the festive season approaches, with increased demand for cash for shopping and business transactions.
“In terms of (the cash) scarcity, this is something that has not ended since the redesign of the naira,” Oluwole said.
Oluwole stated that banks have only two principal sources of cash: the CBN and retailers.
“Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands, and retailers often sell cash for profit, making it harder for banks to access funds,” he explained.
He mentioned that the apex bank has failed to meet the cash demands of banks, while retailers profit by selling cash instead of depositing it back into the banking system.
“But, of course, it is beginning to become more pronounced now that we’re heading towards the Christmas celebrations, where a lot of people are going to need money to carry out their shopping and other businesses.
“Banks are not in a position to force retailers to bring the cash to banks,” he added, describing how this dynamic exacerbates the scarcity of cash in automated teller machines and across bank counters.
Oluwole also called for a reduction in reliance on cash, stating that a cashless economy is cheaper, safer, and more efficient for the economy.
“An economy that operates in a cashless manner does better than a cash-dependent economy. It is a proven thing all over the world,” he stated.
Also, the ASSBIFI president called for security agencies to crack down on illegal currency trading.
“You cannot be selling cash. You cannot sell your currency to people for a profit at discounted rates. It is not done anywhere,” Oluwole emphasised.
He encouraged authorities to look into reports of point-of-sale personnel buying cash at petrol stations and supermarkets.
Oluwole concluded by stating that no bank purposely withholds cash from its consumers.
“No bank wants to starve its customers of cash. It does not make sense for any bank to hold on to cash, but you can only give what you have,” he said.
“As the cash crisis persists, stakeholders are urging the CBN to act swiftly to address these concerns and alleviate the strain on both banks and the public,” Oluwole stated.
In addition, the National Coordinator of the Human Rights Writers Association of Nigeria, Emmanuel Onwubiko, issued a statement criticising the CBN and its Governor, Olayemi Cardoso, for mishandling monetary policy and holding them accountable for the resultant widespread misery.
He also emphasised how cash scarcity has rendered millions, particularly in rural regions, unable to conduct transactions, pushing small enterprises, craftsmen, and daily wage earners farther into poverty.
“Nationwide, long bank and ATM queues have become the norm, with depositors unable to access their funds despite sufficient balances,” he added.
Onwubiko contended that the crisis shows not only inadequate monetary policy but also deeper systemic difficulties in Nigeria’s economy.
He urged President Bola Tinubu to act quickly to stabilise the banking system and prevent an economic collapse.
The group also urged the National Assembly to summon the CBN Governor for accountability and oversight.
