Lawmakers in Nigeria’s House of Representatives have directed the Central Bank of Nigeria (CBN) to investigate the cause of the ongoing shortage of Naira notes in commercial banks.
The resolution came on Tuesday during a motion initiated by Uguru Emmanuel (APC, Abakaliki/Izzi Federal Constituency), Ebonyi State. Mr Emmanuel complained that insufficient cash in circulation hurts individuals, businesses, and the national economy.
He went down memory lane, recalling that on December 21, 2022, the CBN cash withdrawal limits were a maximum of ₦500,000 and corporate entities up to ₦5,000,000. “This policy has not been repealed?” he wondered.
He said several banks were ignoring these limits and imposing their limits, sometimes less than ₦50,000, on their account holders. “This cash crunch is a major barrier to economic activity,” he said, noting how entrepreneurs must wait in long lines at banks, often leaving without money.
Many Nigerians are struggling, especially in rural areas, and they lack access to point of sale (POS) systems. “People are unable to buy necessities or pay for medical care,” which could lead to loss of life, he warned.
Then, he wondered how so much cash was available to POS operators, who reportedly sell up to one million Naira. “Where are these POS operators getting such cash?“
Emmanuel cautioned that if the CBN continues limiting cash distribution to banks, it will worsen the hardships individuals and businesses face, especially with the holiday season approaching. “We need immediate action to resolve this crisis,” he concluded.
When put to a voice vote, the House consented to the resolution.
But parliamentary resolutions are neither mandatory nor enforceable. The CBN, on its part, claims there was no reason for cash shortages and requests customers report banks and ATMs that are not dispensing cash.
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