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The Central Bank of Nigeria (CBN) has initiated spot checks on banks across the country to address the ongoing cash scarcity affecting millions of Nigerians. The directive was announced by CBN Governor Olayemi Cardoso during the 2024 Annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
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Starting from December 1, 2024, bank customers have been encouraged to report difficulties in accessing cash from ATMs and branches. The CBN has provided dedicated phone numbers and email addresses for customers to report issues specific to their states.
Unannounced Spot Checks and Compliance
To enforce compliance, CBN officials have begun unannounced visits to bank branches to monitor cash distribution practices. Banks found hoarding cash during these inspections will face punitive measures.
“All branches of Deposit Money Banks (DMBs) have been instructed to release all available cash to customers to ease the cash crunch,” the CBN emphasized.
Restrictions on Withdrawals Persist
Despite these measures, many banks have continued to impose strict withdrawal limits. In Abuja, for instance, over-the-counter cash withdrawals are capped at ₦20,000, while Automated Teller Machine (ATM) withdrawals are limited to ₦50,000 for account holders using their bank’s cards. Customers using cards from other banks face even lower limits.
Banks have attributed the cash scarcity to insufficient allocations from the CBN, a claim the apex bank has refuted.
Rising PoS Transaction Charges
Amid the crisis, Point of Sale (PoS) operators appear to have easier access to cash but have significantly raised transaction charges. In major cities like Lagos, Abuja, and Port Harcourt, PoS operators now charge as much as ₦400 for a ₦10,000 withdrawal. The CBN has described this practice as unacceptable and is reportedly exploring measures to curb exploitation.
Encouraging Accountability
Governor Cardoso reiterated the importance of transparency and urged customers to actively report any challenges they face while trying to withdraw cash.
The CBN’s intervention comes as the nation grapples with widespread cash shortages, highlighting the urgency to restore confidence in the banking system and ensure equitable cash distribution.
