Nigerians Complain As Poverty Is Made Worse By A Lack Of Money.

Banks claim that rationing was driven by a limited cash supply and low cash deposits.As economic misery strikes, lawmakers ask the CBN to fix the cash crunch.

Customers of Abia Bank in Abia State have complained about several of the state’s banks’ N5,000 cash withdrawal cap.

However, one bank’s customers were permitted to take out up to N10,000.

Customers of one of the banks may withdraw up to N10,000, but they could also receive up to N40,000.
An old-generation bank’s Market branch on Umuwaya Road by Okwulehie Street in Umuahia has a N5,000 withdrawal restriction, but its main branch at Good Shed permits up to N20,000.

The largest withdrawal amount in the majority of ATMs N10,000 is the upper limit.
Abuja— The serious economic problems that Nigerians are facing, which are exacerbated by high costs for goods and services, have been made worse by banks’ return to widespread and strict cash rationing.

However, the Central Bank of Nigeria, or CBN, was urged by the House of Representatives to take immediate action to resolve the issue that has disrupted economic activity and caused great suffering for the populace.

According to Vanguard’s study, most bank branches have cash withdrawal restrictions for over-the-counter and automated teller machine (ATM) transactions that range from N5,000 to N10,000.

Across the nation, bank clients who spoke with the media described unpleasant encounters when taking out cash.

Bank representatives ascribed the decrease in consumer cash deposits and a restricted cash supply from the Central Bank of Nigeria, or CBN.

This comes despite a recent warning from the Central Bank of Nigeria (CBN), which instructed banks to make sure that clients receive their money efficiently through ATMs and over-the-counter (OTC). The CBN will also step up its supervisory responsibilities to guarantee that banks are following the directive.

Furthermore, the CBN encouraged the public who are unable to obtain cash over-the-counter or through ATMs at DMBs to report such instances using the designated reporting channels and format provided in a circular signed by the CBN’s acting Director of Currency Operations, Solaja Olayemi, and its acting Director of Branch Operations, Isa-Olatinwo Aisha. pledged.

Customers of several commercial banks in Port Harcourt, the capital of Rivers State, voiced their displeasure with internal bank practices that restricted over-the-counter cash withdrawals to a meagre N10,000.

They also expressed dissatisfaction with the fact that some automated teller machines (ATMs) only dispense cash between 9 a.m. and 12 p.m., Monday through Wednesday.

Recently, a customer who only went by Craig claimed, “My bank cannot give you more than N10,000 cash across the counter,” at one of the most well-known commercial banks on Port Harcourt/Aba road. The ATM may not always dispense cash.

He claimed that a lot of individuals now use POS (point of sale) because of this frustration. operators for their cash transactions (of sale).
Lagos
When I visited many banks in Lagos yesterday, they only gave out little amounts of cash, and several of the ATMs weren’t working at all.

A N10,000 ATM and N10,000 over-the-counter cash withdrawal restriction were disclosedat the new generation bank in Ikotun.

The withdrawal limit for other bank customers was N20,000 for in-person transactions and N20,000 for automated teller machines. The maximum amount that non-bank customers may access was N5,000.

A new generation bank’s customers might withdraw up to N20,000 at the ATM and N10,000 in person.

Lengthy lines at several banks’ ATMs, which indicated how difficult it was to get cash.

The withdrawal limit for other bank customers was N20,000 for in-person transactions and N20,000 for automated teller machines. The maximum amount that non-bank customers may access was N5,000.

A new generation bank’s customers might withdraw up to N20,000 at the ATM and N10,000 in person.

On the second floor of a modern generation bank Over the counter, the bank at 511 Road paid N100,000 to its customers, while non-customers could withdraw N25,000 at a rate of N5,000 each. However, the ATM has ceased dispensing as of 12:37 p.m.

Customers of a new generation bank at Mile 12 were given N40,000 over the counter, but non-customers were only given N10,000. In Ketu, Sterling Bank provided N50,000 via ATMs and N20,000 over the counter.

Over-the-counter cash withdrawals were restricted to N10,000 by an older bank, although withdrawals of N1,000 or more might result in up to N50,000. Some customers in the banking hall were asked to fill out another slip with a smaller cash withdrawal request in accordance with the bank’s restriction, which is between N10,000 and N20,000, if their withdrawal slips had requested between N30,000 and N50,000. The majority of banks displayed a N10,000 cash restriction.

Bank customers could take out N10,000 all at once, but non-customers might take out N5,000 twice.

“I don’t have an ATM card because the ATM terminals in these banks have swallowed three of my cards this year,” bemoaned Mrs. Yetunde Usman, a bank customer. I stopped applying for cards as a result, and I now only take out cash from my bank.

“You will have to pay N200 to get N5,000,” added Miss Bamgbose Adura, who also voiced her frustrations. It used to be N100. Many people have visited the banks as a result of this. However, the state of affairs at the bank is concerning.

An anonymous bank employee told that: “The Central Bank of Nigeria, CBN hasn’t given us any money. Therefore, we must share what little we have.

Additionally, as you are aware, a large number of clients do not make deposits at this time. Rather of taking the money to the bank, they give it to operators, PoS, and Points of Sale.

Bank employees explain why there is a shortage.
The CBN is going through a cash constraint, thus banks don’t have cash on hand for customers, a Festac bank employee informed our correspondent.

He claims that things continue to worsen and that as of yesterday, their bank was one of the local financial institutions that paid clients up to N100,000.

Abuja

Investigations was outlined into many Abuja bank branches paint a sombre picture. limited cash supply, with many banks only permitting small withdrawals at ATMs and at the counter.

Customers of a new generation bank said that they could only withdraw a maximum of N5,000 over the counter, but others claimed that in some branches, the limit had been raised to N10,000.

In a same vein, it was claimed that an old-fashioned bank was paying out N10,000 to each customer at its counters.
Many consumers complained that the restrictions were not enough to cover their everyday expenses, particularly in light of the high cost of living and current inflation.

The performance of ATM services was not better. Customers had to wait in huge lines at a number of locations, and many ATMs were either broken or only dispensed little quantities of cash, frequently in lower denominations.
Bank employees, “We don’t have enough cash to meet the demands of our customers,” the anonymous speaker stated.

According to Ondo Vanguard’s inquiry, consumers struggle to get enough cash at ATMs and over the counter throughout the state.

While certain ATMs dispense N20,000 to consumers and N50,000 to customers of other banks, the highest amount that banks in Ondo State can discharge over the counter is between N10,000 and N50,000.

However, the majority of ATMs were found to be devoid of cash that could be disbursed to patrons.

Bank authorities requested that customers use POS agents to collect higher amounts.

According to a bank official who spoke out on condition of anonymity, the development resulted from the restricted amount of accessible funds. within the banks.

“The amount given to the banks is not enough to load ATMs,” he said.

“It was also found that a large number of customers do not deposit their cash in the banks, which is why there is a shortage nationwide.”

The majority of POS operators have raised their fees in response to the cash shortage, according to the findings.

In order to stay in business, they purchase cash from BEDC operators and fuelling station workers.

Ekiti
In Ekiti, some consumers are still having a lot of trouble getting enough cash at commercial banks’ ATMs and over the counter, even after the Central Bank of Nigeria (CBN) ordered banks to provide cash to their clients.

A Point of Rebecca Jinadu, a sales operator at Ado-Ekiti’s Okesa market, stated that her bank only disburses N20,000 over the counter and that many customers were encouraged to utilise ATMs.

“They only give N20,000 over the counter when I go to the bank these days, but they do advise us to use ATMs, which typically dispense between N30,000 and N50,000,” she said.

Joseph Awe, a customer of a well-known commercial bank in the state, claimed that bank employees were upset about the lack of cash and that customers were only handed N30,000 at the counter and ATM.

“I went to the bank this afternoon and was given N30,000 instead of the N50,000 I wanted to withdraw.”
According to a bank executive who requested anonymity, the bank is now dealing with a lack of cash, with the guarantee that clients would soon be able to access any withdrawals.

Customers’ increasing annoyance with stringent cash withdrawal limitations and protracted wait times was evident during Oyo Vanguard’s tour of many banks in Ibadan, the capital of Oyo State.

clients were only permitted to withdraw N10,000 over the counter and N20,000 via ATMs. This resulted in a great deal of discontent among bank clients.

Many patrons complained about having to wait in lengthy lines, which frequently lasted more than an hour.

Femi Adekunle, a small company owner at an old generation bank, described his experience: “I got here before 9am, and I’m still waiting in queue. The limit is annoying because all I want to do is take out money for my business. I can’t work efficiently with just N10,000.

“N10,000 is hardly enough for anything these days,” said Chijioke, a customer at another bank, echoing the same view. Why the banks are unable to raise the limit is beyond me. They seem to be making it more difficult for us to access our own funds.

Fatima, a customer at a new generation bank, said she was disappointed, saying, “It’s the same story every time I come here.” I am unable to obtain the quantity I require due to the lengthy lines. It is somewhat disheartening. People who simply cannot wait any longer have left without making a purchase, in my experience.

Many consumers emphasised the psychological costs of waiting in addition to the withdrawal restrictions. Temitope, a frequent bank customer, remarked, “It’s exhausting.”

When bank customers were unable to obtain the necessary funds for their demands, they were disappointed.

According to some bank clients who spoke with Vanguard, the amount they received was significantly less than what they had anticipated.

Mrs. Funmi Adelani, a trader, claimed that she was only able to receive N50,000 out of the counter when she wanted to take out N150,000.

“This Christmas season, I need money for my business,” she stated. To my astonishment, I received peanuts instead of the money I had hoped to receive for my business.

Another consumer, who only gave her name as Mary, stated that she had intended to take N100,000 but instead received N50,000.

Additionally, Mr. Adebola stated that he was in the bank to retrieve N50,000, but he was able to to get N20,000.
The maximum amount that someone can withdraw from an ATM is N40,000, according to investigations conducted at the locations.

A visit to a new generation bank showed that its users can withdraw a maximum of N40,000 per day from the ATM, whilst customers of other banks can only withdraw a maximum of N20,000.

Customers and non-customers alike can receive N40,000 using an ATM operated by an older bank. Customers from other banks can withdraw N10,000 four times to equal N40,000, however customers from this bank can withdraw N40,000 all at once. That is the sole difference.

Speaking to Vanguard on condition of anonymity, officials from a few of the institutions that were visited blamed the issue on a lack of cash in the banks.

According to them, the quantity offered to clients is determined by the cash on hand and the quantity of patrons in the area.

They urged bank clients to employ transfers for their commercial dealings.

The weekly maximum that Wema Bank offers across the counter is N500,000, which is equivalent to N100,000 per day. Customers are also permitted to withdraw N100,000 per day via an ATM, according to Semilore Titilope, a client who was harassed at the Wema Bank branch in Mokola.

According to a banker who verified it, the bank is not at fault; rather, they must follow the CBN’s directive.

Customers of Anambra Bank in Anambra State reported that they no longer visit the banks to request cash withdrawals because they find that part of banking services to be a nightmare.

The majority of Additionally, the ATMs are not working, so when clients need cash, they have no choice but to visit the Point of Sale (POS) operators.

With the exception of people sending remittances, the development has left banking halls across the state deserted.

No matter how much is requested, no consumer is permitted to withdraw more than N20,000 from one of the banks located within the state secretariat.

When the customer asked, the bank employees merely said that there was no cash and sent them to the ATM, which has also been broken for a while.

Unexpectedly, every POS operator who works in close proximity to one another has cash on hand to disburse at astronomical commissions. For example, the majority of Awka’s POS operators now gather Unexpectedly, every POS operator who works in close proximity to one another has cash on hand to disburse at astronomical commissions. For example, the majority of Awka’s POS operators now gather I was informed by the bank employees that there was no money in the bank.

“This trend has exacerbated the economic hardship faced by the masses,” stated Mrs. Nneka Itumo, the chairperson of the Ebonyi State Market Women’s Association. As they did last year, the banks have begun to hoard available cash. At the expense of their clients, POS operators are increasing their earnings in the interim.

During Bayelsa Vanguard’s tour of commercial banks in the state capital of Yenagoa, it was discovered that one of the older banks permitted N50,000 cash withdrawals, but other banks had limits between N10,000 and N20,000.

Additionally, while the few ATMs on the banks’ grounds that did have cash were giving out between N10,000 and N20,000, many of the kiosks were not giving out cash to the general population.

“This is actually “A troubling circumstance,” complained a consumer who only went by Gabriel. “As the banks claim they don’t have cash, I wonder where the point-of-sale operators get their own money if a customer can get up to N100,000 from them.”

Samuel Ese stated: “To be honest, I haven’t visited the banking hall or ATMs very often since the banks started acting in such an unprofessional manner. I decided that I would like to make transfers whenever I could.

Edo
Customers of several banks in Edo State are not allowed to withdraw more than a specific amount, typically N10,000, and they are not permitted to withdraw more than N40,000 in installments while using an ATM.

According to a client who identified himself as Hassan, “It has been difficult since the naira redesign.” taking funds out of our account. Although things have somewhat improved, my bank has only been giving N5,000 over the counter for the past month. They claim that we either use transfers or ATMs.

According to a banker who spoke to Vanguard, one of the goals of the cash rationing is to promote cashless transactions.

However, because there are so many depositors in those market locations and they pay the banks, our branches there provide more to depositors in areas near the markets, such Mission Road, Akpakpava, Mission Road, New Benin, and Oba Market places.

“A lot of depositors now prefer to sell their cash to POS operators rather than bringing them to the bank as deposits, which is another factor responsible for many branches not having enough money.” Cash withdrawals for over-the-counter transactions at Nasarawa State’s commercial banks are restricted to N10,000.

However, the banks kept the current N20,000 daily ATM withdrawal restriction, which made it challenging for consumers to acquire money.

The majority of the banks Vanguard visited yesterday in Mararaba, Karu Local Government Council, set withdrawal limitations at the aforementioned sums.

Customers were observed complaining in the bank hallways after becoming irate over the banks’ withdrawal limit policy.

Insufficient cash in the banks’ vaults was blamed by several bank employees that our reporter approached while pretending to be a prospective client in need of money.

“You are going through this because even the banks don’t have any cash.” lack money of their own. He remarked, “We are simply sharing what we have in the banks.”

Point of Sale (POS) fees have increased as a result of the development; operators now charge N200 to N250 for withdrawals of N5,000 and N400 for withdrawals of N10,000.

Similarly, the operators charge N800 and N1,600 for 40,000 and N20,000, respectively, to withdraw N20,000 from the POS.

Ibom Akwa
Business owners in the metropolis of Uyo Akwa Ibom State have been complaining about the lack of cash since mid-November.

Speaking on Tuesday, a few point-of-sale operators expressed their regret that it has grown more difficult to obtain cash from the banks in recent weeks.

Last week, it was noted that the POS operators raised their N100 is charged.

“It has become very difficult for one to withdraw enough cash from the counter,” one of them, who wished to remain anonymous, stated. But if you know someone at the bank, you will probably be able to get the money you need.

CBN representatives: Address the cash crunch
The House of Representatives, meantime, voiced worry yesterday over the persistent cash shortage in commercial banks throughout the nation and urged the Central Bank of Nigeria, or CBN, to take action to alleviate the situation, which has severely hampered economic activity and put residents through hardship.

This came after Uguru Emmanuel made a motion of urgent public significance.

Emmanuel introduced the motion, emphasising the dire economic and social ramifications of the cash shortage, which has left Many Nigerians lack access to money, even for necessities.

He pointed out that although company investment and consumer spending are key drivers of economic growth, these activities are now severely hampered by the ongoing cash constraint.

The legislator recalled that the CBN imposed cash withdrawal limitations of N5 million for business entities and N500,000 for individuals in its policy directive dated December 21, 2022.

He did note, though, that commercial banks have mostly ignored this rule, frequently restricting cash withdrawals to ¦10,000 or nothing at all.

Individuals and entrepreneurs must wait in huge lines at banks, often for days without any results. Rural residents who depend on cash for transactions and do not have access to digital payment systems have been disproportionately impacted by this circumstance, Emmanuel bemoaned. The House’s resolution required the Committee on Banking Regulations to look into the commercial banks’ cash crunch and provide a report within a week.

If the CBN was not to blame for the cash shortfall, the House ordered it to rectify it immediately.

For this reason, we are now charging N300 for N10,000 rather than the previous N200. We are not to blame.

Mr. Etuk, a client of an old-fashioned bank, claimed that his bank had recently restricted cash withdrawals to N100,000.

“On occasion, they will only give you N40,000 and ask you to take out the rest using your ATM,” Etuk continued.

A printing press operator from Uyo named Emmanuel Udoh Effion banks with an older The maximum amount I have been permitted to collect this December is N50,000 at the start of the month, according to banks.

These days, the highest amount that may be taken out over the counter is between N10,000 and N20,000.

They insist that customers make transfers over the counter, claiming there is no money.

Our reporter was informed by Arita Essien, who runs a point-of-sale service in Uyo, that “business has been difficult because at my bank they won’t let you withdraw more than N20,000.” On a good day, that is.

They usually lament the lack of money. They claim that they wish to persuade clients to use POS and internet banking.

Other employees might advise that since there isn’t enough money in circulation, consumers should take their business involving transfers.

Due to the problem, we are forced to purchase cash from traders and other individuals involved in regular cash transactions. However, if banks claim there is no cash, we continue to wonder where people acquire all the fresh mint currency they spray at weekend gatherings.