Newsfront Online …Telling the Public as it is
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The Nigeria Labour Congress, on Tuesday, expressed concerns over the lingering cash scarcity in the country.
Five days to the Christmas Day celebration, the congress said in a statement by its National President, Joe Ajaero, that the situation had serious implications for citizens, insisting that urgent steps must be taken to address it. Bank customers have been groaning over their inability to access cash to meet daily needs, despite assurances from the Central Bank of Nigeria. The banks have continued to ration cash over-the-counter, while many ATMS are not dispensing cash.
However, NLC in the statement warned the Federal Government and the Central Bank of Nigeria that a mass public protest was imminent if nothing was done to address the naira shortage. “We urge government to collaborate with other financial institutions to improve banking services, such as ensuring the availability of cash at ATMs and bank branches to facilitate easy access for the public. We urge the CBN to provide clear and transparent communication to the public regarding the steps being taken to address the cash crunch and reassure citizens about the stability of the financial system.”
Lingering challenge
Findings by The PUNCH on Tuesday showed that banks were unable to meet the cash needs of their customers Some ATMs visited in Abuja, including GTBank, First Bank, Zenith, and United Bank of Africa were not dispensing cash. At GTbank located along Airport Road, customers were complaining about the low amount given to them. But bank officials said the amount given was to meet the demand of all customers.
A PoS operator, Faith Emeka, said banks lacked sufficient cash. She said she resorted to making deals with market women and traders to boost money supply. She said, “I went to bank today and I was told it is still N10,000 they are giving each customer over the counter, the bank used to give N20,000; the ATMs were not even dispensing money and it is just frustrating. I now get cash from market women and that is not without its issues because I have to move up and down to get cash, practically begging.”
Another official with a Tier-A bank, who spoke with our correspondent on condition of anonymity, blamed the perceived scarcity on hoarding by some Nigerians. She said, “The CBN has been distributing cash to main branches of banks in each city and then the branches share among their various branches in each city.
“Also, we don’t rely only on what the CBN gives, many persons have also mopped up cash from the economy in one way or the other and are expected to deposit in banks to help with circulation of the currency in the economy but are hoarding it.”
Last week, the acting Director of Corporate Communications, CBN, Mrs Hakama Ali, said sufficient cash had been sent to all its branches across the country for onward distribution to Deposit Money Banks.
Ali emphasised that the apex bank had adequate cash to meet the day-to-day transaction needs of Nigerians. She attributed the current situation to the hoarding of the local currency by some individuals due to challenges experienced during the naira redesign project.
(punchng.com)
