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Thursday, 02 February 2023 06:04

Naira Swap: Bank Chiefs Challenge CBN On Quantity Of New Notes

The cash crunch that hit most banks in the country since Monday, January 30, 2023 continued yesterday as banks said they have not been getting enough cash from the Central Bank of Nigeria (CBN) to disburse to their customers.

Consequently, the Association Senior Staff of Banks Insurance and Financial Institutions (ASSBIFI) has challenged the Central Bank of Nigeria (CBN) to make public how much new Naira notes it had pushed into circulation, even as it expressed worry over the scarcity of new and old Naira notes in the country.

The president of ASSBIFI, Comrade Olusoji Oluwole, lamented that Nigerians are going through excruciating difficulties in order to feed and do business transactions because of the cash crunch brought by the policy. He called for a review of the policy in order to save Nigerians from further hardship.

Oluwole urged the CBN to publicly declare how much of the new Naira notes has been printed and distributed so far to banks for disbursement compared with what has been withdrawn from the public.

The ASSBIFI helmsman disclosed that its independent study showed that the volume of the new notes in circulation is highly insufficient and most of the Automated Teller Machines (ATMs) have no new notes to dispense, while some of those dispensing are still paying out old notes.
“Nigerians have been reduced to moving from one ATM point to another in search of new Naira notes that should have been abundantly supplied. Pressure has been on bank workers who interface with the angry public in the process of depositing old or withdrawing the new notes, and we request urgent actions by the CBN to avoid attacks and other unruly actions against these bank workers as their safety and health are of great concern to the union to us in ASSBIFI,” Oluwole said.

A banker who craved anonymity said addressing the scarcity of cash is something that only the CBN can do, even as he said there ought to be discussions between the CBN and the committee of bank chief executives on how to address the ongoing scenario.

“The CBN should know what our requirements are, they should know what we require and how much will serve our customers. A bank that has over 300 branches and the CBN is giving them only N350 million; that means N1 million per branch. How do we deal with this?

“We can’t even pay with the old note and we don’t have the new notes. The new trend is that, because banks don’t want to get in trouble, they are paying customers in N100 and N20 notes. And that is because they don’t want more problems. Customers are protesting that they want their money and since the lower denominations are still legal tender, banks are paying with them.

“There is a shortage of cash everywhere. We did not envisage what is happening now. The only place where a solution can come is from CBN. The CBN should release more cash, and at the CEO level, there should be engagements with CBN on this,” the banker stated.

The president, Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, has attributed the current scarcity of old/new Naira notes coupled with fuel scarcity and hike in pump prices to systemic failure and corruption.

Speaking in an exclusive interview with LEADERSHIP in Lagos yesterday, Wabba said: “Millions of man-hours are lost with many people now rendered unproductive by scarcity of old, new Naira notes while people now spend hours on queue for fuel in a society blessed with abundant human and natural resources.

“The unbanked people living in rural areas and marketers are feeling the pain more as they don’t have any other means of survival. There are no old and new maira notes for people to transact business. Why the haste in implementation of Naira redesign which could have been allowed to flow side by side for months before old notes are eventually mopped up.”

Nationwide, bank tellers have been turning customers away as they say there is no cash to pay them, and queues at the few Automated Teller Machines (ATMs) that are paying cash are growing longer.

Ngozi, a trader who sells electrical materials alongside her husband in Lagos said she is already running low on cash and does not know if she will be able to open her shop by the end of the week if the cash crunch continues.

“All the people that have been patronising my shop have been doing transfers which even misbehaves. I went to the bank to collect cash so that we can have money to run around and I was told that I can only get N2000. I have money in the bank and I can’t take it. It is very frustrating,” she said.

A roadside fruit seller said all her regular customers have been paying her with transfers and the few who are paying cash have paid with the new notes.

“All the transfers that my customers did yesterday, I am yet to get the alert but since they are my regulars, I am not so worried. This scarcity of cash has to end soon”, she said.

A business woman in Lagos, Mrs Kome Enobong, told LEADERSHIP that she left her home as early as 7am to her bank to withdraw some of the funds in her account, only to be told that there is no money to give to her.

“I have visited three Union Bank branches, but I couldn’t withdraw my money. I was told that there is no money in the bank to give to me. This is my money that I have worked for. The ATMs are not dispensing cash either. How am I going to feed my children, because right now, I don’t even have money on me?,” Mrs Enobong lamented.

A teacher, Mr James Niyi who also shared his ordeal with LEADERSHIP, said, “I cannot withdraw my own hard earned money from my bank. I had to use POS, where I spent N1,000 to get N10,000. This is really pathetic,” Niyi said, calling on CBN to intervene.

A POS operator, Mr Okanlawon noted that, they have not been able to do business as usual as there is no cash to give to customers who continue to throng his shop in search of cash. “My customers have been begging me for cash but what can I do if I don’t have the cash to give them? If this continues, I hope that people don’t take to the streets to riot over scarcity of cash.”

As of yesterday, some POS operators were charging N1,500 for N10,000 withdrawals while some were charging N1,000.

Mrs Akin, a civil servant, said after lots of begging and shouting in the bank, she was able to get N5,000, paid in N5 notes.

LEADERSHIP had, on Tuesday, reported that business activities were paralysed in Lagos State as bank customers queued for long hours at Automated Teller Machine (ATM) terminals across Lagos State to withdraw cash.

Similarly, electronic banking transfer through the mobile app, or USSD code, as well as Point of Sales (POS) machines network were extremely poor as people could not pay for services rendered through the electronic banking system.

This halted business activities as there was no physical cash to settle for services offered, while the electronic transfers were held up from network downtime.

Those who had purchased goods from supermarkets and motorists who wanted to buy fuel at filling stations with the hope of using their ATM cards for payment were disappointed.

Following the extension of the deadline for the depositing of old Naira notes by the CBN for 17 days, Nigerians besieged ATMs in search of cash, starting from Monday till yesterday, with many unable to get cash in the end, while those who got were limited to only one withdrawal of N20,000 maximum from few ATMs, as banks which had the new notes began to ration it.

LEADERSHIP findings revealed that maximum bank withdrawal from the few ATMs paying was limited to N20,000 while other banks withdrawal limit was put at N10,000.

Many ATMs visited by LEADERSHIP in major parts of Lagos were crowded with bank customers seeking to make withdrawals.

Kaduna bank customers have continued struggling to get the redesigned naira notes at ATM points as POS operators charge high on withdrawals.

Our correspondent who visited FCMB, First Bank and Keystone Bank branches in Sabon Tasha in the Kaduna metropolis observed that customers were not finding it easy to withdraw money.

One of FCMB customers who identified himself as Victor Samaila said: “ I was here for a long time but when it was my turn I withdrew only N20,000. The money is new naira notes, not old ones. Some ATMs are not dispensing money and, as you can see, people are much here”

At First Bank Sabon Tasha, one of the customers, Vero Adamu, said:”I went to two POS points and they told me they don’t have money to give customers, and as I arrived here the ATM was filled up with customers waiting to withdraw. I have spent an hour here so far, waiting for my turn.”

The POS operators are not helping the situation as they charge up to N1000 to pay out N10,000, which is 10 times the usual price.

One of the operators told our Correspondent that they are finding it difficult to get cash from the banks and called for an extension of the date to three months.

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