Address Cash Crunch Now, Reps Order CBN

The House of Representatives has asked the Central Bank of Nigeria (CBN) to address the ongoing cash crunch in commercial banks nationwide, disrupting economic activities and imposing significant hardship on Nigerians.

This followed the adoption of a motion of urgent public importance by Hon Uguru Emmanuel from Ebonyi State at plenary on Tuesday.

Moving the motion, the lawmaker noted the severe economic and social implications of cash scarcity, which have left many citizens unable to access funds even for basic needs.

Emmanuel said while economic growth relies heavily on consumer spending and business investment, the persistent cash shortage has become a major impediment to these activities.

In its December 21, 2022 policy directive, he recalled that the CBN set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities.

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However, Emmanuel observed that commercial banks have mainly disregarded this policy, often limiting cash withdrawals to less than N10,000 or nothing at all.

He expressed worry 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.“

The lawmaker further raised the alarm over the apparent disconnect between commercial banks and point-of-sale (POS) operators, who seem to have unlimited access to cash and often sell it at exorbitant rates.

“Where do POS operators get their cash from while banks remain dry?” he queried, warning that unless the CBN takes immediate action, the situation could worsen, especially with the festive season approaching, leaving businesses frustrated. Citizens plunged into more profound economic hardship.

Upon adopting the motion, the House mandated the Committee on Banking Regulations to investigate the cash crunch in commercial banks and report within one week.