The blame for the cash shortage in the country has been heaped on the door step of the Central Bank of Nigeria.
The Association of Senior Staff of Banks, Insurance, and Financial Institutions blamed the apex bank for failing to meet the cash demands of commercial banks.
ASSBIFI President, Olusoji Oluwole said: “In terms of (the cash) scarcity, this is something that has not ended since the redesign of the naira.
“Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands, and retailers often sell cash for profit, making it harder for banks to access funds.
“But, of course, it is beginning to become more pronounced now that we’re heading towards the Christmas celebrations, where a lot of people are going to need money to carry out their shopping and other businesses.
“Banks are not in a position to force retailers to bring the cash to banks,” he added, describing how this dynamic exacerbates the scarcity of cash in Automated Teller Machines and across bank counters.
Citing statistics, Oluwole stated that banks collectively require at least N20m daily to operate, with ATMs needing approximately N8m each and N4m over the counters.
He stressed the importance of CBN providing clear statistics on cash circulation to improve distribution efficiency.
“For us, we are not interested in trading games like we were doing last year but looking for solutions. The solution, one, is for CBN to have clear statistics, so that they understand where they are, how they are circulating, and where they are circulating to,” he said.
Oluwole also advocated for a shift towards less dependency on cash, emphasising that a cashless economy is cheaper, safer, and more efficient for the economy.
“An economy that operates in a cashless manner does better than a cash-dependent economy. It is a proven thing all over the world,” he stated.
In addition, the ASSBIFI President called for security agencies to crack down on illegal currency trading.
“You cannot be selling cash. You cannot sell your currency to people for a profit at discounted rates. It is not done anywhere,” Oluwole emphasised.
He urged authorities to investigate reports of point-of-sale operators buying cash from fuel stations and supermarkets.
Oluwole concluded by reiterating that no bank deliberately withholds cash from its customers.
“No bank wants to starve its customers of cash. It does not make sense for any bank to hold on to cash, but you can only give what you have,” he said.
“As the cash crisis persists, stakeholders are urging the CBN to act swiftly to address these concerns and alleviate the strain on both banks and the public,” Oluwole stated.
