Naira scarcity: Emefiele era returns, Nigerians lament

Nigerians have taken to various social media platforms to decry the rising level of the scarcity of the Naira.

The naira scarcity comes approximately 12 months after Nigerians went through similar ordeal in 2022.

Recall that following the Naira redesign policy implemented by the CBN between December 2022 and February 2023, a cash shortage ensued until the Supreme Court extended the deadline to December 31, 2023.

However, this extension was later revoked at the request of the federal government.

As the Christmas and New Year festivities approach, Nigerians are once more encountering a shortage of Naira notes.

According to reports, many Automated Teller Machines of Deposit Money Banks in many parts of the country are either not dispensing cash or are witnessing long queues.

This situation has led to nationwide outcry from Nigerians condemning the situation, while also seeking for an urgent intervention by the federal government.

Popular Nigerian artist, Yemi Alade, on the 14th of December while lamenting the situation through her social media account posted, “Some branches have a 5000 naira limit for over the counter cash withdrawals !!! Which coven is CBN operating with?”

A tweep identified as @Brilliant_Arin, also tweeted,”One can’t withdraw more than 10k at ATM stands. The security man said they’ve started packing old notes to stop its circulation.

“We’re back to the zero hour, naira scarcity that went round in Jan/Feb is about to repeat itself. What a country, lol.”

Another tweep, identified as @Toluspin, tweeted,”Another naira scarcity? Lmaoo, APC will make sure you people hit your limit by force.”

Also as a result of the situation, it has been reported that Point of Sale service providers nationwide are increasing fees for cash deposits and withdrawals by more than 50% in certain areas, citing a scarcity of naira in banks.

According to a report from Nairametrics, certain POS operators in cities like Lagos and Abuja have raised their transaction fees. These operators are facing challenges accessing Naira from banks or ATMs.

For instance, in Karu, Abuja, a POS operator mentioned increasing the charge from N200 to N250 for a N10,000 transaction, marking a 25% rise in fees.

In another area of Abuja, at Aya junction, Ms. Felicity, a POS service provider, now charges N200 for N5,000 and N300 for N10,000, indicating substantial increases of 100% and 50% respectively in transaction fees.

Likewise, in Lagos, an operator named Mr. Joshua informed Nairametrics that due to the scarcity of cash, he can no longer maintain the usual N100 charge for a N5,000 transaction.

A tweep identified as @Oluwa_Samuel, while lamenting the increase of transaction fee by POS service providers tweeted,”We are in another cash scarcity period. POS operators are cashing out. The same thing happened last year during the Buhari administration. I use 250 to collect 6k.”

While justifying the actions of the POS operators, @Mr Smith, tweeted,”They are sourcing fund from like 5-10 banks to service clients, taken transport cost into consideration.

“SHE left ITELE for AYOBO only to be paid 5k and same person left AYOBO for Iyana-ipaja to source cash, only to be paid 20k.How much do you expect her to charge?”

The Central Bank on Wednesday had promised Nigerians that it is looking into resolving the issue.

The apex bank’s acting director, corporate communications,Sidi Ali, attributed the current situation to the hoarding of the currency by some individuals.

She said the CBN had released sufficient cash to its branches across the country for distribution to deposit money banks.

“On the issue of cash not being sufficient, there is enough cash. CBN issued enough cash to the deposit money banks (DMBs),” she said.

Ali said as of March 2023, the currency in circulation amounted to N1 trillion.

“But the figure has risen now because of the situation. We have pushed cash into circulation; we have given cash. As it is now, as at December 11, the currency in circulation is N3.4 trillion,” she said.

“So, you see, there is cash out there. And CBN is really giving to banks, except that most of this cash is in the hands of individuals. All these panic withdrawals, hoarding is ongoing.

“That is why we are doing sensitisation, letting the public have confidence that this December 31 issue is no more. Let them bring out this cash so that they can do transactions. They can go to the banks, and the banks will deposit with the CBN.”

Also while reacting, the Nigeria Labour Congress, has warned the Federal Government and the Central Bank of Nigeria that a mass public protest was imminent if nothing was done to address the naira shortage.

The NLC president, Joe Ajaero, stated,“Fresh in the minds of every Nigerian is the excruciating conditions that we were subjugated to as a result of the last cash crunch earlier this year that was orchestrated by the ill-conceived and ill-implemented currency redesign policy of the immediate past. The sorrow that botched exercise foisted on us is not what Nigerians wish to witness again in one year.

“This time, there is no discernible reason by the Central Bank of Nigeria, neither any explanation from the government on why Nigerians should be subjected to this level of suffering once again in 2023; though we have heard reasons like the increase in fake notes in circulation and the hoarding of the naira.

“These reasons are clearly unacceptable as we cannot see anything that will make any Nigerian hoard the naira. In any case, it is not the ordinary Nigerian that hoards money in their houses.”

The leader of the NLC remarked that if the CBN’s assertion about individuals hoarding illicitly acquired money in their residences to evade detection was accurate, it cast serious doubt on the government’s anti-corruption efforts.

He further elaborated that this statement from the CBN essentially suggests that since this government took office, corruption has surged, leading to the establishment of secret locations to store illegitimate funds.

Ajaero further stated,”The question then is, should the ordinary citizens be made to suffer the apparent incompetence of government in prosecuting the anti-corruption war, or is it that there is actually no anti-corruption war going on?

“Nigerians are spending more time in the banks, trying to source for cash not for monies that are not in their accounts, but for their own money.

“This is undermining confidence of the public in the banks, and may discourage the citizenry from participating actively in banking. It is shameful that Nigerians would have to spend a lot of money to gain access to their hard-earned income.

“We are creating another avenue for economic rentiers such as the PoS operators and their collaborators in the banks to fleece Nigerians. Subjecting us again to spend our meagre salaries buying our money automatically devalues our income.”