By Milcah Tanimu
As the festive season approaches, Christmas shoppers in Nigeria find themselves contending with a deepening shortage of the naira, leading to heightened frustrations and impediments in essential purchases for the holidays. Investigations conducted across various states, including Lagos, Abuja, Osogbo, Makurdi, Sokoto, Edo, and Gusau, reveal that several banks are still imposing restrictions on cash transactions over-the-counter, and a significant number of Automated Teller Machines (ATMs) are failing to dispense cash.
Despite reassurances from the Central Bank of Nigeria (CBN) regarding increased cash availability for economic activities, consumers encounter difficulties obtaining cash through traditional banking channels and ATMs. Poultry vendors and local retailers are reportedly adamant about cash payments, causing inconvenience for customers. Street traders and small enterprises voice their challenges, with some reporting a decline in business due to the cash shortage.
The scarcity prompts a surge in the use of Point of Sale (PoS) services, accompanied by an increase in service charges as operators adapt to cope with the diminishing cash supply. Some shoppers express frustration over the inconvenience and limitations on their Christmas shopping, while others highlight the difficulties experienced by PoS operators.
The CBN attributes the cash scarcity to the suboptimal implementation of the naira redesign policy, resulting in hoarding by certain individuals. Acknowledging the shortcomings in various policies, the apex bank announces a comprehensive review initiative. Although the reported amount of cash in circulation has risen to N3.4 trillion, apprehension and hoarding persist as impediments to the effective circulation of available cash.
Residents across states such as Benue, Zamfara, Edo, Niger, Rivers, Osun, Gombe, Sokoto, and Kebbi report challenges in accessing cash through ATMs and PoS services, posing difficulties in conducting transactions during the festive season. Despite the CBN’s assurance of ample cash availability, the reported scarcity has raised concerns among citizens and businesses.