With barely two weeks until Christmas and the New Year celebrations, residents of Kaduna, Kano, and Katsina states are facing an intense cash shortage that has made it increasingly difficult to access physical currency.
The situation, which mirrors the cash crunch of the 2022 yuletide season, has left many frustrated, urging authorities to take urgent action to ensure a smooth festive season.
READ ALSO: Shettima urges banks to address cash scarcity
In Kaduna city, Point of Sale (POS) vendors have expressed dissatisfaction over the ongoing cash shortage, with banks limiting withdrawals to just N20,000. Some POS vendors, speaking to the News Agency of Nigeria (NAN), noted that they began experiencing the cash crunch in early December.
Adamu Amadu, a POS operator, shared his struggle to meet demand, revealing that he now charges higher fees due to the shortage. “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,” he said. He also pointed out that Nigerians may not be ready for a cashless policy. Ibrahim Nur, another POS operator, confirmed that he is only able to attend to customers requesting smaller amounts, ranging from N1,000 to N10,000.
Customers have voiced their dissatisfaction with the high transaction charges, as many struggle to access cash. Bilkisu Moda, a resident, mentioned visiting three different POS centers without success before resorting to an Automated Teller Machine (ATM) after a long walk. Jamila Sani, another customer, withdrew N5,000 and paid a N100 service fee, urging the government to alleviate the hardships faced by small business owners who rely on cash transactions.
In Kafanchan, residents have also expressed frustration over the cash shortage. POS operator Felicia Christopher explained how the lack of cash has severely impacted her business, while her colleague Sadiq Abdulazeez had to temporarily shut down operations due to the ongoing issue. Event planner Bulus Audu called for better communication about the cause of the crisis, while civil servant Nathaniel Bawa questioned why cash scarcity seems to be a recurring issue at the end of each year.
In Zaria, grain merchants have resorted to sourcing cash from Abuja and neighboring Niger Republic to sustain their businesses. Malam Bilyaminu Musa, a businessman, highlighted that the cash shortage has made it difficult for farmers to sell their produce, especially since many are unwilling to accept digital payments due to fears of fake alerts. Musa emphasized that without the influx of merchants from other regions, prices for grains would have plummeted.
In Kano, residents are facing a similar crisis, with many unable to access cash at ATMs, which are either empty or malfunctioning. Aliyu Yakubu, a resident, lamented the inconvenience caused by the lack of physical currency, while Aminu Yusuf, a vendor, expressed his frustration with customers struggling to pay for goods. Aisha Ali, a civil servant, voiced her difficulties in purchasing essentials, calling for urgent intervention from the authorities.
Katsina is also experiencing widespread cash shortages. Investigations revealed that many ATMs are either not functional or dispensing very limited amounts. Malam Abubakar Muhammad shared his disappointment after discovering that his bank’s ATM had no cash, while Aminu Abdullahi lamented the long queues at functioning ATMs. POS operators in the region have raised their charges, citing difficulties in obtaining cash from banks. One anonymous operator explained that they were charged N1,000 for every N100,000 they withdrew, forcing them to increase their service fees.
In response to the growing crisis, Vice President Kashim Shettima has urged Nigerian Deposit Money Banks (DMBs) to ensure the seamless availability of Naira notes. Speaking at the 2024 Bankers’ Committee Retreat, Shettima emphasized the need for swift action to address the scarcity, particularly in light of the Christmas season. He also expressed concern about the exploitation of customers by rogue POS agents and called for measures to curb these practices.
The Central Bank of Nigeria (CBN) has reportedly set up committees to monitor the activities of commercial banks across the country to ensure the availability of cash. However, residents of Kaduna, Kano, and Katsina continue to face significant hardship as they await solutions to the ongoing cash shortage.
