Address Cash Crunch, Reps Tell CBN

• The House of Representatives urged the Central Bank of Nigeria to address the ongoing cash crunch, which is causing significant hardship
• Lawmakers highlighted that banks are limiting cash withdrawals to as low as N10,000, affecting citizens’ access to necessary funds

The House of Representatives has expressed concern about the ongoing cash crunch in commercial banks across the country, urging the Central Bank of Nigeria (CBN) to address the situation, which has caused significant hardship for citizens.

In a motion introduced under Matters of Urgent Public Importance by Hon. Uguru Emmanuel, the House highlighted the severe economic and social consequences of cash scarcity, which has left many Nigerians unable to access funds even for necessities.

Hon. Emmanuel stated that, while economic growth heavily relies on consumer spending and business investment, the ongoing cash shortage has become a major impediment to these activities.

The lawmaker recalled that the CBN in its December 21, 2022 policy directive, set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities.

However, he observed that commercial banks have largely disregarded this policy, often limiting cash withdrawals to as little as N10,000 or nothing at all.

“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,” Hon. Emmanuel lamented.

He further raised alarm over the apparent disconnect between commercial banks and point-of-sale (POS) operators, who seem to have unlimited access to cash and often sell it at exorbitant rates.

“Where do POS operators get their cash from while banks remain dry?” he queried.

The lawmaker warned that unless the CBN takes immediate action, the situation could worsen, especially with the approach of the festive season, leaving businesses frustrated and citizens plunged into deeper economic hardship.

In its resolution, the House mandated the Committee on Banking Regulations to investigate the cash crunch in commercial banks and report back within one week.

The House directed the CBN to urgently address the cash scarcity if it is not responsible for the shortage.