The House of Representatives has expressed concern over the ongoing cash crunch in commercial banks across the country, calling on the Central Bank of Nigeria (CBN) to address the situation, which has disrupted economic activities and imposed significant hardship on citizens.
The call by the House is coming on the heels of the directive by Vice President Kashim Shettima to the CBN and commercial banks in the country to swiftly resolve issues of cash scarcity and arbitrary charges by point-of-sale (POS) operators.
The CBN last week issued a directive mandating Deposit Money Banks (DMBs) to prioritise efficient cash disbursement to customers both over the counter and through Automated Teller Machines (ATMs).
The directive, which took effect on December 1, 2024, forms part of the apex bank’s continued efforts to enhance currency circulation and address cash shortages across the nation.
In a motion brought under Matters of Urgent Public Importance by Hon. Uguru Emmanuel, the House highlighted the economic and social implications of the cash scarcity, which has left many Nigerians unable to access funds even for basic needs.
Hon. Emmanuel noted that while economic growth relies heavily on consumer spending and business investment, the persistent cash shortage has become a major impediment to these activities.
The lawmaker recalled that the CBN, in its policy directive of December 21, 2022, 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.
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, often selling it at exorbitant rates.
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.
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