Xmas: Nigerians groan over cash scarcity in Kaduna, Katsina, Kano
Just weeks before Christmas and New Year celebrations, getting cash in Kaduna, Kano, and Katsina has become arduous. It is reminiscent of the 2022 Yuletide season.
Distraught residents are urging urgent action by the concerned authorities not to hamper the forthcoming Christmas and end-of-year festivities.
In Kaduna, some point-of-sale vendors have lamented the unbecoming and unnecessary cash shortage as banks no longer dispense cash of more than N20,000.
Some vendors said they started experiencing a cash shortage in December.
Adamu Amadu said, “We used to charge N100 per N10,000 transaction, but now we charge N200, and most of the time, our cash finishes early due to the high demand. I don’t think Nigerians are ready for a cashless policy.”
Another individual, Ibrahim Nur, stated that he only attended to customers requesting lesser amounts ranging from N1000 to N10,000 due to the cash scarcity.
Meanwhile, residents have decried the high service rates, saying that the bank also charges for transactions.
Bilkisu Moda said she visited three PoS centres searching for cash, but with no positive response, she eventually withdrew from an ATM after trekking a long distance.
Jamila Sani said she withdrew N5,000 and paid N100 as a service charge, which she said was the normal price she usually paid.
She urged the government to ease the stress of the masses as most small business owners heavily depended on cash for transactions.
In Kafanchan, the residents have expressed their frustration over the current cash situation in separate interviews.
Felicia Christopher, a PoS operator, stated that the situation had greatly impacted her business.
“The lack of cash has seriously affected my business as i don’t make much profit as before. The banks don’t give cash beyond a certain limit in a day, and it’s really frustrating,” she explained.
Another PoS operator, Sadiq Abdulazeez, explained that the cash crunch had forced him to temporarily shut down operations.
An event planner, Bulus Audu, said the lack of information on the cause of the cash shortage was not helping matters.
For Nathaniel Bawa, a civil servant, he wondered why cash scarcity has become common at the end of every year.
Mr Bawa called on the Federal Government to take necessary steps to address the situation as the yuletide season approaches.
PoS operators now collect twice the amount they hitherto charged per transaction due to difficulty sourcing cash.
In Zaria, Bilyaminu Musa, a businessman in the Layin Zomo area of Sabon Gari LGA, said grains merchants defied risks and reverted to the old style of sourcing cash from Abuja and other parts of the country for their businesses.
He said the cash scarcity had negatively impacted grain businesses at major markets in parts of Kaduna, Kano and Katsina.He said most grain merchants have partners who provide funds for the large-scale purchase of farm produce during harvest season, stressing that cash scarcity was a major bottleneck for large-scale purchases.Mr Musa explained that accessing cash from the commercial banks was difficult.Similarly, some commercial banks’ customers and PoS operators in Zaria have also decried the inability of banks to make cash available.Awwal Abdullahi stressed the need for the Central Bank of Nigeria and other regulators to take concrete actions against some of the commercial banks that were not putting cash in their ATM machines.
In Kano, the residents have raised concerns over the cash scarcity across the state,with many resorting to alternative payment methods like PoS services, which have also been
affected by the crisis. They said the situation was once again plunging them into hardship, reminiscent of the currency swap period.
The residents urged CBN and commercial banks to take urgent action to resolve the cash crisis, which severely disrupted the state’s daily life. Some residents explained that the scarcity made it increasingly difficult to meet their daily needs.
A resident, Aliyu Yakubu, lamented the inconvenience caused by the limited access to physical cash, particularly as businesses, transportation, and daily transactions increasingly depend on electronic payment systems. He urged the authorities concerned to investigate the matter and punish those responsible.
Another resident, Aminu Yusuf, lamented that he was facing difficulty paying for goods, and customers were struggling to buy from him. Mr Yusuf asked the CBN to make more cash available and sanction banks hoarding cash.
A civil servant, Aisha Ali, voiced her frustration over the difficulties she has been facing. She explained how it has become increasingly challenging for her to purchase essential household items due to the unavailability of cash. Ms Ali also called on the CBN to urgently take action against the banks and persons responsible for the cash shortage.
A PoS operator, Nura Abubakar, blamed the commercial banks for the difficulties in accessing cash. According to him, the constant breakdown of POS terminals and the high transaction fees have exacerbated the challenges faced by the customers.
Musa Saleh, another PoS agent, explained that the scarcity has also impacted their operations, attributing the problem to the banks.
In Katsina, several residents were also struggling to get cash. Checks revealed that most of the banks’ ATMs were not functional. Few banks dispense the cash, with customers having to endure long queues to obtain some money.
Abubakar Muhammad said he went to an ATM to withdraw some money, only to find out that the machine had no money. He lamented that the banks now don’t put money at ATMs, the situation causing more hardship to the people and crippling business operations.
Mr Muhammad said, “Even inside the banking halls at the counter, his bank now gives only a limited amount of N20,000. The majority of the banks don’t put cash in the ATMs.”
Aminu Abdullahi lamented how banks nowadays do not put money in their ATMs, leaving their customers in difficulty. Mr Abdullahi said that the customers have resorted to patronising POS operators who have also charged higher money.
According to him, PoS operators have increased their charges from N100 to N200 for every N10,000. He also appealed to the authorities concerned to take urgent measures to address the problem.
Similarly, some PoS operators have complained about the cash scarcity that forced them to increase their charges. The operators claimed they face difficulty getting the cash to give to their customers.
PoS operators increased their charges from N100 to N200 and above for every N10,000, while some operators charged higher than that amount.
Tukur Hamza, a resident of Katsina, said that for a long time, he preferred to patronise POS operators because their services were more accessible.He said that withdrawing money from the POS outlets has also become difficult due to cash scarcity at ATMs.
Meanwhile, Vice-President Kashim Shettima has urged banks to ensure the seamless availability of Naira notes to the banking public.
Mr Shettima made the call on Friday in Abuja at the 2024 Bankers ‘ Committee Retreat.
“We would like to take this opportunity to appeal strongly to the committee to urgently clear up thorny issues in the sector, some of which are
impeding the efforts at financial and economic inclusion. Nigerians complain bitterly that they are unable to access even minimal cash when most needed.
“There seems to have been some moral hazard and adverse selection problem with the involvement of street-side PoS merchants. Nigerians complain about high and arbitrary charges and exploitation by rogue agents, which we are sure you will be able to tackle with concerted efforts,” he said.
(NAN)
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