The House of Representatives, on Tuesday, expressed concern over the ongoing cash scarcity in commercial banks across the country.
This is even as the Reps called on the Central Bank of Nigeria, CBN, to as a matter of urgency address the situation to save Nigerians the current hardship.
This was contained in a motion brought under Matters of Urgent Public Importance by Honourable Uguru Emmanuel.
Moving the motion, Emmanuel highlighted the severe economic and social implications of the cash scarcity. He bemoaned that the situation has left many Nigerians unable to access funds even for their basic need.
He 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.
He, however, observed that commercial banks have largely disregarded the policy. Often limiting cash withdrawals to as little as N10,000 or nothing at all.
The lawmaker expressed worries that, “Entrepreneurs and individuals are subjected to long queues, sometimes spending days at banks without success. This situation has particularly affected rural dwellers who rely on cash for transactions and lack access to digital payment systems.”
Emmanuel further raised the alarm over the apparent connect between commercial banks and Point of Sale (POS) operators. Who he said, have unlimited access to cash, often selling it at exorbitant rates.
“Where do POS operators get their cash from, while banks remain dry?” the lawmaker queried.
He, therefore, warned that unless the CBN takes immediate action, the situation could worsen. Especially with the approach of the festive season. Thus, leaving businesses frustrated and citizens plunged into deeper economic hardship.
Following the motion, the House mandated the Committee on Banking Regulations to investigate the cash crunch in commercial banks. The Committee is to report back within one week.
The House also directed the CBN to urgently address the cash scarcity if it is not responsible for the shortage.
source: Daily Post
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