As the Christmas and New Year celebrations approach, residents of Kaduna, Kano, Katsina, and Kebbi states are facing severe cash shortages, leading to widespread frustration. With barely two weeks until the festive season, accessing cash has become a Herculean task for many in these northern states, reminiscent of the challenges experienced during the 2022 yuletide period.
In Kaduna city, Point of Sale (POS) vendors have reported a sharp decline in the availability of cash, with banks only dispensing a maximum of N20,000 at a time. This scarcity has forced POS operators to increase their service charges, with some vendors charging N200 for every N10,000 transaction, double the usual fee.
Adamu Amadu, a POS operator, explained that his business had been significantly impacted as cash supplies ran out quickly due to high demand. “We used to charge N100 per N10,000 transaction, but now we charge N200, and most of the time our cash finishes early,” he said. He also expressed concerns over the ongoing transition to a cashless policy, stating, “I don’t think Nigerians are ready for a cashless policy.”
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Residents also voiced their dissatisfaction with the situation. Bilkisu Moda shared her frustration after visiting three different POS centres in search of cash, only to find none available. “I eventually withdrew from an ATM after walking a long distance,” she said. Jamila Sani added that she had to pay N100 as a service charge for withdrawing N5,000, urging the government to intervene to ease the strain on small business owners who rely heavily on cash transactions.
In Kafanchan, the cash scarcity has similarly affected POS vendors, forcing some businesses to shut down temporarily. Sadiq Abdulazeez, another POS operator, shared his frustration: “The banks don’t give cash beyond a certain limit, and it’s really frustrating,” he said.
In Zaria, grain merchants have been significantly affected by the shortage. Malam Bilyaminu Musa, a local businessman, explained that the lack of cash has made it difficult for farmers and merchants to conduct transactions, especially as many farmers do not have bank accounts or are wary of fake alerts. Despite the shortage, some merchants have resorted to traveling to other parts of the country to source cash for their business operations.
Similarly, in Kano, residents have resorted to alternative payment methods, such as POS services, which are also being hindered by the cash crunch. Many have reported difficulties in accessing cash, with some ATMs out of service or dispensing limited amounts. Aliyu Yakubu, a resident, expressed his frustration: “I’ve been to several ATMs, but they were either out of cash or not working.”
In Katsina, the situation is no better, with long queues at ATMs and many machines either out of order or dispensing limited amounts. Malam Abubakar Muhammad, a resident, shared his experience, saying, “I went to an ATM, but it had no money. The majority of banks don’t put cash in their ATMs anymore, which is causing more hardship.”
To address the growing crisis, Vice President Kashim Shettima has urged Nigerian Deposit Money Banks (DMBs) to ensure the availability of Naira notes to the public. At the 2024 Bankers’ Committee Retreat, Shettima emphasized the importance of resolving the issues impeding financial inclusion and called for urgent measures to address the cash shortage.
The Central Bank of Nigeria (CBN) has reportedly set up committees to monitor commercial banks’ activities in an effort to resolve the crisis. However, the situation remains tense as residents in these affected states continue to struggle with limited access to cash, just in time for the busy holiday season.
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