Nigerian banks continue to limit cash withdrawals, causing frustration among customers who prefer using cash for transactions.....KINDLY READ THE FULL STORY HERE▶
Business Hallmark’s investigations reveal that some banks still restrict customers from withdrawing more than ₦100,000 (One hundred thousand Naira). While the Central Bank of Nigeria sets the minimum cash withdrawal from banks at ₦500,000 per week, some banks insist on allowing customers to withdraw not more than N50,000 or sometimes N20,000 from the counter or ATMs.
Customers have expressed dissatisfaction with this treatment, as going to ATMs can be even more frustrating, with withdrawals sometimes limited to N20,000. Despite the Central Bank of Nigeria’s efforts to promote a cashless policy initiative to reduce financial crime, tax avoidance, and promote financial inclusion, customers are increasingly frustrated by the banks’ cash withdrawal limits.
The last time Nigerians experienced cash rationing was in early 2023 when the CBN redesigned the naira notes, leading to a currency crisis and a shortage of naira. Even the CBN is surprised by the re-emergence of cash scarcity.
The CBN is currently investigating alleged collusion between some Deposit Money Banks (DMBs) and Point-Of-Sale (PoS) operators, which is affecting the availability of cash and disrupting the seamless circulation of the naira. The apex bank has, therefore, warned of sanctions against the banks and POS operators found to be complicit in the current naira scarcity crisis.
With cash withdrawal limits set at N20,000 per day for individuals and ₦100,000 per week, accessing money has become difficult for many people. This has led to feelings of anger and disappointment among customers who are unable to access their own money.
Engr Edwin Ifeanyi Ejenike, a retired civil servant, shared his experience. “I felt very bad and distressed when I couldn’t withdraw my money. It limited my movements and made it difficult to feed my family. Sometimes I had to borrow cash from church collections and repay through ATM transfer to the church account.”
Barr. Antonia, another affected individual, said, “It shatters my emotions and disrupts my financial activities. I don’t appreciate it because I earned the money and saved it in the bank, and I should be allowed to use my money at will.”
The cash rationing has also affected daily life and financial planning for many individuals. Engr Sunday mentioned, “It reduces the tasks I’m supposed to get done daily and makes financial planning so difficult. I have to prioritize and postpone others to weekends most of the time.”
Many people have turned to digital payments due to cash rationing, although some find it inconvenient. “It’s not a necessity, but it’s a reasonable measure to check regular armed robberies and the availability of cash for vote buying,” said Engr Edwin Ifeanyi Ejenike.
The CBN’s decision to redesign the currency and introduce cash rationing has received mixed reactions. While some see it as a necessary measure, others find it inconvenient.
As the cash rationing continues, Nigerians are calling for improved communication from banks and alternative payment methods to ease the difficulties. “Banks should make POS machines available at markets and stores, and educate the public about their strategies,” said Engr Edwin Ifeanyi Ejenike.
The cash rationing has also raised questions about the effectiveness of the policy. “Is it really necessary, or is it just an inconvenience?” asked Ejenike Antonia.
As the debate continues, one thing is clear: cash rationing has affected many Nigerians, and they are calling for change.
“I will consider switching banks if cash rationing becomes too restrictive,” said Engr Sunday.
As the situation continues to unfold, one thing is certain: Nigerians will be watching closely to see how the CBN addresses their concerns.