Scarcity of Naira Worsens at Nigerian Banks as Customers Shun Cash Deposits

Since the Central Bank of Nigeria (CBN) announced the extension of deadline for return of the old naira notes, checks by Investors King has revealed that most Nigerians have refused to deposit money in the banks.

This development was said to have been triggered by the low circulation of the resigned N1000, N500 and N200 naira notes and inability of the nation’s commercial banks to load their Automated Teller Machines (ATMs) with the new notes.

Investors King had reported that CBN Governor, Godwin Emefiele had directed commercial banks to ensure they load there ATMs with the new notes.

However, banks have not lived up to expectations even as reports of naira racketeering rock the financial institutions.

Most ATMs have been witnessing crowds as customers fight their way out on long queues to withdraw cash.

At various banking halls across the country, activities of financial transactions have decelerated drastically as customers complain of lack of cash.

While most banking halls were desolated as a result of paucity of funds in bank vaults, the few banks that were said to be preparing to load their ATMs were beseiged by frustrated customers, mostly operators of Pont of Sales (PoS).

Customers who visited bank counters to withdraw cash said they were given lower denominations such as N5, N10 and N20.

A bank official disclosed that the CBN had restricted commercial banks from to paying denominations lower than N200 notes owing to scarcity of new notes and to also discourage the spending of the larger denominations.

Confirming lack of cash to pay customers, the Chairman of the National Association of Microfinance Banks, Osun State chapter, Tunde Lawal, said the situation has led to the collapse in operations of many of the banks.

There was confusion at a microfinance bank in Osogbo early Thursday when some aggrieved customers threatened protest as bank officials flee. They had claimed that the bank was not attending to them.

Meanwhile, operatives of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have started monitoring the cash disbursement exercise in Bauchi State as the agency noted that the operation would spread across the country.

The joint taskforce comprising operatives of the ICPC and its sister anti-graft agency, the Economic and Financial Crimes Commission (EFCC) and some officials of the apex bank was said to have been necessitated following reports of hawking of the new notes by black marketers.

The Lagos and Ondo States Chambers of Commerce, Industry have said the implementation of the new naira policy introduced by the CBN was designed to run micro small and medium enterprises and the common man out of business.

The spokesperson for the agency, Adeboro Onibalusi said the new policy has caused hardship for Nigerian Masses especially micro small and medium enterprises operators.

In a statement signed by the chambers’ Director-General, Chinyere Almona, the Lagos chapter noted that the CBN’s inability to properly plan and implement the phasing out of old naira notes has caused serious strain on many businesses.