Like a repeat of the pre-election crisis where access to cash becomes limited and cash gets traded for a premium, agent banking operators, popularly called PoS, have increased withdrawal charges through their outlets.

Before now, withdrawals of N5,000 attracted N100, but that has changed as customers now pay N200 or more for every N5,000 withdrawal.The withdrawal of N10,000 attracts N300s and above as automated teller machines (ATMs) in most banks have stopped dispensing cash.

This comes as the Central Bank of Nigeria (CBN) has threatened to impose a fine of N150 million on deposit money banks (DMBs) found culpable of issuing illegal flow of mint naira notes to currency hawkers across the country.

This was contained in a statement by the Acting Director of Corporate Communications of the apex bank, Sidi Ali Hakama in Abuja. The move came after the apex bank addressed recent misinformation about the validity of the old N1000, N500 and N200 banknotes still circulating.

The statement reaffirmed that the denominations remained legal tenders in line with a Supreme Court ruling issued on November 29, 2023, and warned against hoarding.

Following the clarification, CBN, in a circular signed by the Acting Director of the Currency Operations Department, Mohammed Olayemi, said it was concerned about the increasing prevalence of mint naira notes among currency merchants.

The apex bank said the practice impeded efficient and effective cash distribution to customers and the public. The circular, which referred to an earlier directive dated November 13, 2024, highlighted CBN’s determination to address the commodification of the naira.

According to the directive, any branch of a financial institution found guilty will face a penalty of N150 million for the first violation. The apex bank warned that any subsequent infractions would attract stricter sanctions under the Banks and Other Financial Institutions Act (BOFIA) provisions.

To ensure compliance, the apex bank stated that it would increase periodic spot checks in banking halls and ATMs while deploying mystery shoppers to uncover illicit cash hawking spots across the country.

The circular read: “The CBN has noted with dismay the prevalence of illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify Naira banknotes, thus impeding efficient and effective cash distribution to banks’ customers and the general public.

“CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country.

“In this regard, any erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes shall be penalised at first instance N150,000,000.00, One hundred and fifty million Naira, only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020.”

However, the bank did not address the persistent scarcity of cash at ATM outlets and why cash withdrawals within the banking premises are pegged at N10,000 or N20,000 per transaction by some banks.

A retired banker, Mohammed Ande, said the advent of PoS has also left gaps that the CBN and banks are struggling to fill despite its gains. He said: “I think that the CBN will struggle to implicate any bank in this matter. How come the same CBN allows individuals to withdraw money via the PoS but imposes limitations on withdrawals at the ATM? That is a calculated attempt at putting the hapless Nigerians in some difficulties.

“It does appear that the CBN and banks are promoting the operators of PoS to the detriment of the people. I see CBN adopting a double standard here and is not willing to deal with the situation frontally. One way of dealing with the issue is to ensure there is a cap on the amount one can collect via PoS. That will disincentivise PoS and give more freedom to the people once what they can withdraw from the ATM is jerked up significantly. The PoS will simply no longer have the unlimited opportunities they have now.

“The CBN must find a way to encourage Nigerians to get money from the banking halls or at the ATM. I believe the CBN is not ready to address the scarcity of cash in the country. They have all the monetary tools to make that happen if they want.”