The Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) has laid the blame for Nigeria’s worsening cash scarcity squarely on the Central Bank of Nigeria (CBN). According to the ASSBIFI President, Olusoji Oluwole, the apex bank’s failure to meet commercial banks’ cash demands has exacerbated the crisis, creating ripple effects across the economy, especially as the festive season approaches.
“This cash scarcity has persisted since the naira redesign,” Oluwole said during an exclusive interview, pointing out that the demand for cash is heightened by the season’s shopping and business activities.
Oluwole further explained that banks rely on two main sources for cash – the CBN and retailers. However, the inability of the CBN to supply adequate funds and the practice of retailers hoarding and selling cash at a profit have worsened the situation.
“The CBN hasn’t met banks’ demands, and retailers, instead of depositing cash back into the banking system, sell it for profit. This affects the availability of cash in Automated Teller Machines and at bank counters,” he said.
Citing statistics, Oluwole revealed that Nigerian banks collectively require at least N20 million daily, with ATMs alone needing approximately N8 million and over-the-counter transactions requiring N4 million. He stressed that without accurate data on cash circulation, the distribution system remains inefficient.
“We need solutions, not blame games. The CBN must provide clear statistics to improve cash circulation. Globally, cashless economies are more efficient, safer, and cheaper than cash-dependent ones,” he added.
Oluwole called on the government and security agencies to crack down on illegal cash trading, condemning the practice of point-of-sale operators purchasing cash from supermarkets and fuel stations.
In a related development, Emmanuel Onwubiko, National Coordinator of the Human Rights Writers Association of Nigeria, criticised the CBN and its Governor, Olayemi Cardoso, for mishandling monetary policies. Onwubiko noted that cash scarcity has deepened poverty, particularly in rural areas, where millions struggle to carry out basic transactions, pushing small businesses and daily wage earners to the brink.
“No bank wants to withhold cash from its customers. It makes no sense to hoard cash when the economy demands circulation,” Oluwole concluded, urging swift intervention to ease the burden on banks and the public.
As Nigerians brace for the holiday season, the call for urgent action by the CBN grows louder, with stakeholders demanding solutions to a crisis that threatens to derail both economic stability and consumer confidence.
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