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Elections: Customers Make Last-minute Withdrawals as Banks Close Early

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ATM machine
  • Elections: Customers Make Last-minute Withdrawals as Banks Close Early

Customers of Deposit Money Banks on Friday made last minute withdrawals at various bank branches in Abuja and Lagos ahead of the Presidential and National Assembly elections scheduled to take place today (Saturday).

Our correspondents who monitored the activities of some of the banks on Friday in Abuja and some parts of Lagos observed that some banks had a difficult time attending to their customers, who trooped into banking halls in large numbers to make cash withdrawals.

Some of the banks are United Bank for Africa in Wuse, First Bank of Nigeria Plc (Central Area), Zenith Bank Plc (Central Area), First City Monument Bank (Area 3), and Guaranty Trust Bank Plc (Area 3). among others.

It was learnt that some of the banks, in a bid to balance up their accounts, shut their banking halls to customers before the usual time of 4 pm.

For instance, FCMB in a notice to customers on Friday fixed the closing time for all banking transactions at 2 pm.

It said, “Due to the forthcoming presidential election on Saturday, February 16, 2019, please be informed that all our branches will be closed to customers by 2 pm on Friday, February 15, 2019.

“We apologise for the inconvenience this may cause and thank you for your understanding.

“We will resume our normal 8am-5pm banking hours from Monday, February 18, 2019.”

Apart from FCMB, Providus Bank and First Bank Plc, among others, also closed to customers at 2 pm.

The rush from customers, it was learnt, became imperative to enable them to meet up with their financial obligations before the polls on Saturday following the restrictions on movement by the acting Inspector-General of Police.

While most of these customers were seen making huge withdrawals that would sustain them till after the polls, others were seen transferring money through various banking channels.

Even some of the Automated Teller Machines mounted at some of the bank premises came under pressure from customers as some of these ATMs had to be constantly restocked with cash to meet up with the huge demand for cash.

As a result of the large number of people using the ATMs, the development led to disruptions in financial transactions arising from network congestions.

A bank customer who simply gave his name as Kelvin told our correspondent that he needed to make the withdrawals in order not to be caught unawares.

He, however, added that if the period of voting was extended, then he would have the need to be looking for cash to meet his financial obligations.

He said, “Tomorrow (today) is election day and in my office, we are asked to close at 12 pm to enable us to go home and prepare for the polls.

“I have been in this queue for over 30 minutes now to make withdrawals and as you can see, it’s not been easy because of the fact that some of the ATMs are not even dispensing cash and the poor network is not making it possible for some bank ATM cards to work on another ATM machine.

“But whatever the situation, there is a need to get the cash to enable one have something at home because there is a restriction of movement and we don’t know what will happen during the election.

“While no one is praying for violence, voting may be extended and when this happens, no one will be able to go and make another withdrawal. So it’s better to play safe by having enough than being caught unawares.”

Checks by one of our correspondents at three different banks in Lagos showed bank customers were also in a rush to make last-minute withdrawals at ATM machines.

Long queues of bank customers were seen at the Iju branch of First Bank of Nigeria on Friday afternoon while several women were seen moving from the bank premises to a nearby market for last-minute purchases.

Also in Ojodu Berger branch of the Stanbic IBTC and Access Bank, ATM points were filled with bank customers while others were in a queue waiting their turn to withdraw and make other transactions.

A Stanbic IBTC customer, Dapo Adenuga, said he received a text message from the bank, which stated that the bank would close by 2 pm on Friday.

The message obtained by our correspondent read, “Dear customer, in view of the upcoming presidential elections, please be informed that our banking halls will be closed to customers at 2 pm on Friday, February 15, 2019. However, our ATMs, USSD, mobile and Internet banking channels will continue to be available for your use.”

Ibidun Ayoola, who banks with UBA and FCMB, also said she received a similar messaging informing her of the early closure of the banks.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Finance

President Tinubu Orders Release of Minors Prosecuted for #BadGovernance Protests

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Following a recent viral video on the X app regarding the prosecution of minors who protested during the #BadGovernance movement, President Bola Ahmed Tinubu has ordered the immediate release of all prosecuted minors.

This was announced by the Minister of Information and National Orientation, Mohammed Idris, in a statement to the State House Correspondents in Abuja.

In a show of concern over the detention of minors, President Tinubu directed the Ministry of Humanitarian Affairs and Poverty Reduction to investigate and ensure that the law is fully applied to law enforcement agents involved in the unlawful act.

It was noted that the arrests violated human rights and the Child Rights Act, as the 32 detainees are under 18 years old.

Activist organizations, including the Arewa Consultative Forum (ACF), National Human Rights Commission (NHRC), Civil Society Legislative Advocacy Centre (CISLAC), Resource Centre for Human Rights and Civic Education (CHRICED), and Concerned Parents and Educators (CPE), condemned the actions and denounced the treason charges filed against the detained minors.

In a call to action, the Socio-Economic Rights and Accountability Project (SERAP) urged the president to instruct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, to immediately and unconditionally release all protesters arrested during the #EndBadGovernance movement.

SERAP stated, “The immediate and unconditional release of all #EndBadGovernance protesters, including 32 hungry and malnourished children, is necessary.”

According to SERAP, for the peaceful exercise of fundamental human rights, including freedom of expression, assembly, and association without fear of persecution or undue restriction, all detained protesters should be released.

In response to the president’s directive, the Attorney General of the Federation (AGF), Lateef Fagbemi, commented that his office “will need to review the matter to enable me to make an informed decision.”

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Banking Sector

FBN Holdings To Invest N103.1bn In Corporate, Retail Businesses

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FBN Holdings

As part of means of actualizing its expectation of raising N150 billion from its existing shareholders by way of rights issue, the management of FBN Holdings said it has budgeted an estimated N103.1 billion for its corporate business and retail business lending segments of the market.

The Holdings recently held the signing ceremony to begin the rights issue offering of 5,982,548,799 ordinary shares of 50 kobo each at N25.00 per share to its existing shareholder on the basis of one new ordinary share for every six ordinary shares held as of October 18, 2024.

Extracts from the offer raising prospectus of the financial institution revealed that lending to the corporate business segment gets N77.34 billion, while lending to the retail business segment gets a budget of N25.78 billion.

This covers 68.95 per cent of the N150 billion proposed rights issue the management seeks to raise from existing shareholders.

Out of the N150 billion, a total of N29.46 billion was budgeted to support international business expansion and N14.73 billion for investment in automation and digital banking.

According to the financial institution, seamless and convenient banking experience for its customers would be guaranteed through its significant investment in automation and digital banking.

Through its mobile banking app, FirstMobile, and its internet banking platform, FirstOnline, the management of FBN Holdings said it has effectively acquired a broad cross-section of the target demography, with a clear proposition of owning bank accounts and utilising various financial services from the comfort of their locations.

It added that the bank plans to upgrade the FirstMobile and FirstOnline apps with additional features while driving customer adoption of the platforms, noting that the development is in line with First Bank’s commitment to providing customers with the best-in-class electronic banking experience.

The offer, however, is part of the company’s plan to recapitalise its commercial banking subsidiary, First Bank of Nigeria Limited,  with a view to increasing the bank’s capacity for business development and growth.

Chairman, FBN Holdings, Olufemi Otedola in a statement from the document urged shareholders to support the Rights issue by accepting their rights, stating that the company will be well positioned to achieve its strategic objectives and to deliver improved returns to all stakeholders.

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Finance

Currency Outside Banks Increases By 66.2% As Nigerians Shun Formal Banking Channels

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New Naira notes

A recent data has revealed that currency outside banks increased by 66.2 percent in September 2024.

To this end, money outside traditional banking channels rose to N4.02 trillion compared to N2.42 trillion reported in September 2023.

This represents an increase of N1.60 trillion in just one year.

This was revealed in the Money and Credit Statistics data of the Central Bank of Nigeria.

According to the data, on a month-on-month basis, currency outside banks grew by 3.8 percent in September 2024 from August’s figure of N3.87 trillion, translating to an increase of N147.9 billion.

The trend suggests a growing inclination among the public to retain cash outside formal banking channels, a shift that could impact banks’ liquidity and shape monetary policy dynamics.

The CBN data further shows that a considerable proportion of Nigeria’s currency is held outside the banking system.

In September 2024, approximately 93.1 percent of currency in circulation was outside banks, a rise from 87.5 percent recorded in September 2023.

This shift may reflect limited trust in banking services, inflationary pressures, or a structural dependence on cash in Nigeria’s largely informal economy.

Such a high percentage of currency outside banks poses potential challenges for channelling funds into productive investments, potentially hindering economic growth.

The CBN report also highlights a parallel rise in overall currency in circulation, which encompasses both bank-held and outside cash.

In September 2024, currency in circulation rose beyond 56.1 percent year-on-year to reach N4.31trn, up from N2.76trn in September 2023, reflecting an increase of N1.55trn.

This indicates that the volume of currency retained outside the banking sector outpaced the total released for circulation within the past year.

Compared to August 2024, currency in circulation rose by 4.0 percent month-on-month, adding N166.2bn from the previous figure of N4.14trn.

Earlier in September, the CBN announced plans to sanction banks that fail to dispense cash through their automated teller machines, as part of efforts to improve cash availability in circulation.

The CBN also revealed plans to release an additional N1.4 trillion into circulation over the next three months to ease cash flow within the banking system.

This strategy aims to ensure that ATMs and bank branches have sufficient cash, addressing ongoing challenges faced by customers over cash shortages.

In related developments, it was observed that Nigeria’s money supply grew significantly by 62.8 percent year-on-year in September 2024, despite the Monetary Policy Committee’s tightening stance intended to manage excess liquidity to control inflation.

According to CBN data, M3 reached N108.95 trillion in September 2024, up from N66.94 trillion in the same period last year.

On a month-on-month basis, money supply rose by 1.6 percent, increasing from N107.19trn in August 2024.

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