Naira scarcity: NASS urges CBN to resolve shortage

The House of Representatives has charged the Central Bank of Nigeria (CBN) to find a lasting solution to the lingering cash shortage in commercial banks nationwide.

In a motion moved by Uguru Emmanuel, the lawmaker illustrated the widespread economic and social challenges stemming from the cash scarcity, which has left many Nigerians stranded during the yuletide season.

He lamented that it has become extremely difficult for Nigerians to access funds for essential needs, adding that economic growth depends significantly on consumer spending and business investments, both of which have been severely hampered by the ongoing cash crunch.

Representing Abakaliki/Izzi Constituency, the lawmaker recalled that the CBN in its policy directive of December 21, 2022, set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities.

However, he observed that commercial banks have largely disregarded this policy, often limiting cash withdrawals to as little as N10,000 or nothing at all.

“Entrepreneurs and individuals are subjected to long queues, sometimes spending days at banks without success. This situation has particularly affected rural dwellers who rely on cash for transactions and lack access to digital payment systems,” he lamented.

The House mandated the committee on banking regulations to investigate the cash crunch in commercial banks and report back within one week. The House directed the CBN to urgently address the cash scarcity if it is not responsible for the shortage.

The lawmaker also wondered why most Point of Sale (POS) operators sell at exorbitant rates despite having unlimited access to cash,

“Where do POS operators get their cash from while banks remain dry?” he queried.