By Michael Ofulue, Osogbo
As the Christmas and New Year festivities approach, some commercial banks in Osogbo, the Osun State capital, have reportedly imposed a withdrawal limit of N5,000 on customers, citing cash scarcity.
A visit by our correspondent to several banks, including Access Bank, Zenith Bank, Polaris Bank, and Wema Bank, revealed scores of disgruntled customers lamenting the withdrawal restrictions.
Many claimed that the banks had reduced payouts from N10,000 last week to N5,000, alleging a lack of cash reserves due to heavy withdrawals from Automated Teller Machines (ATMs), especially by Point of Sale (POS) operators.
The development sparked heated arguments between bank officials and frustrated customers, many of whom expressed dissatisfaction with the current situation.
One customer, Mrs. Funmilayo Alani, voiced her frustration, saying, “How can a bank be paying N5,000 to customers at a time when families are preparing for Christmas celebrations? It’s very unfortunate. Are we returning to the era of Mr Emefiele, where money was scarce?
“I read in a newspaper that the Central Bank of Nigeria (CBN) urged customers to report any commercial bank hoarding money for unknown reasons. If this ugly trend is not addressed, it will worsen, leaving customers unable to buy food and other necessities. POS operators are now charging exorbitantly. To withdraw N10,000, they charge N300, and for N20,000, the charge is N500.”
Another customer, Mr. Johnson Agwa, expressed disappointment after visiting Access Bank.
“It’s shocking to see banks paying only N5,000 to customers. There’s no official report of money scarcity, so why are banks claiming they don’t have enough cash? Between the apex bank and commercial banks, who should we believe? This country is in a mess, and nobody is addressing the challenges, especially as Christmas approaches.”
A banker at the Access Bank branch in Osogbo, speaking under the condition of anonymity, explained that the issue is not a general cash scarcity but rather the rapid depletion of cash loaded into ATMs.
“We load money into ATMs, but before you know it, the cash is withdrawn, primarily by businesspeople and POS operators. This leaves us with insufficient cash to pay customers inside the banking hall,” the official said.
Meanwhile, the Central Bank of Nigeria (CBN) recently announced a fine of N150 million per branch on Deposit Money Banks found guilty of enabling the illegal distribution of mint naira notes to currency hawkers and other unscrupulous agents.
The Acting Director of the Currency Operations Department, Mohammed Olayemi, disclosed this in a statement, noting the apex bank’s concern over the increasing trade of mint naira notes by hawkers. The practice, he said, disrupts efficient cash distribution to customers and the general public.
The CBN circular, dated November 13, 2024, highlighted the bank’s commitment to tackling the commodification of the naira. Under the directive, any financial institution’s branch found culpable will face a penalty of N150 million for the first violation.