Babatunji Wusu –
There are states in the union where there is a shortage of fresh currency, and people are moaning and complaining about it.
Many citizens of the states already affected by the recent financial crisis voiced frustration over not being able to get cash because banks have begun to limit cash withdrawals over the counter and numerous Automated Teller Machines (ATMs) have stopped disbursing money.
There were lengthy lines at the few ATMs with cash on hand, making it difficult for locals to withdraw.
There have been reports of cash shortages in a number of states, including Ondo, Edo, Kwara, Delta, Lagos, Plateau, Jigawa, Kaduna, and Osun.
The daily operations and enterprises have been adversely impacted by this development.
According to our correspondent, banks in Ilorin, the capital of Kwara State, restricted the amount of cash that clients could withdraw from the banking hall. Additionally, ATMs were set up to only dispense a certain amount of cash, which resulted in lengthy lines of patrons waiting in the few ATMs that had cash at the city.
Depending on the bank or branch visited, different amounts can be withdrawn by customers.
Some point-of-sale operators have been forced to temporarily close their businesses due to this event, and others who have cash have upped their withdrawal fees and are rationing cash while they keep an eye on the situation.
According to other accounts, just a small number of ATMs in some of the Jos metropolis’ banks had cash dispensers. Since the others weren’t loaded with money, they were disabled.
Customers in Dutse, Jigawa State, who made large withdrawals from their banks told terrifying stories of how the commercial banks in the state only handed out a maximum of N20,000 in cash to their clients.
Along with citizens of Akure, the capital of Ondo State, residents of Warri, Effurun, and the surrounding areas in Delta State raised worries about the stress they endured in trying to access cash.
However, The Nation claims that banks in the states of Anambra, Ogun, Katsina, Bayelsa, Niger, Akwa-Ibom, and Benue provided services to clients without any restrictions since they were untouched by the mounting worries about a shortage of new cash.
CBN Response
However, a Central Bank of Nigeria (CBN) official stated that the confusion surrounding old naira notes and uneven cash flow dynamics are the reasons behind the cash scarcity that some states are experiencing.
The official stated that because of the approaching holidays, a lot of people and organizations are also making sizable withdrawals.
He clarified in the conversation with The Nation that individuals scrambling to get hold of cash were still ignorant of the most recent Supreme Court ruling, which states that both old and new notes are still valid for use as money forever.
The CBN official encouraged Nigerians to use digital payment methods, but reassured them that there was no need to fear or panic because the central bank was collaborating with commercial banks to guarantee sufficient cash circulation.
Supreme Court Decision
On November 29, 2023, the Supreme Court issued a new ruling in which it said that both the old and new Naira notes will continue to be accepted as lawful tender until further notice.
Remember that the timeframe for phase-out of old naira notes was extended by the top court in March 2023 to December 31, 2023?
On November 21, 2023, the federal government applied to the Supreme Court, requesting a prolongation of the time that old naira notes might be used.
The Federal Government should continue to issue banknotes until it makes a decision on the issue, the Supreme Court ruled in a decision rendered by a seven-member panel chaired by Justice Inyang Okoro.
Retrospect: Emefiele And The Scarcity Of Cash
Recall that in the lead-up to the general elections of 2023, Nigerians were severely cash-strapped due to a contentious naira redesign and cashless policy implemented by then-CBN Governor Godwin Emefiele, who replaced the old notes with new ones.
The inability of Nigerians who had raced to deposit their old naira notes by the deadline to obtain the new notes caused a cash constraint that impacted my firm and other economic activity nationwide.
