The Nigerian financial landscape is currently grappling with a persistent cash scarcity that has significantly hampered citizens’ access to their funds. This predicament, punctuated by long queues at banks and dysfunctional Automated Teller Machines (ATMs), has become a source of growing frustration and economic hardship, especially as the festive season approaches. Chief John Nduwuisi, a prominent Igbo leader and former President of Ohanaeze Ndigbo in Spain, has voiced his concerns regarding this pressing issue, appealing to President Bola Tinubu for decisive intervention. Nduwuisi’s plea underscores the urgency of the situation and the need for swift action to alleviate the suffering of ordinary Nigerians. He argues that the current cash crunch is not only mentally stressful but also economically damaging, hindering businesses and daily transactions across the country.
At the heart of this financial quagmire lies the apparent paradox of Point of Sale (POS) operators having ready access to cash, including mint notes, while banks continue to claim scarcity. This discrepancy has fueled suspicion of collusion between elements within the Central Bank of Nigeria (CBN) and commercial banks, creating an artificial scarcity that benefits POS operators at the expense of regular bank customers. These operators, exploiting the desperate need for cash, charge exorbitant fees for withdrawals, further exacerbating the financial burden on Nigerians. Nduwuisi questions the source of the POS operators’ abundant cash supply, implying a deliberate manipulation of the system that requires immediate investigation and rectification. He calls on the CBN Governor, Olayemi Cardoso, to intensify reforms within the banking sector and dismantle any existing cartels or collusive practices that perpetuate this exploitative situation.
While acknowledging President Tinubu’s efforts to revitalize the economy and improve the living conditions of Nigerians, Nduwuisi criticizes the apparent sabotage of these efforts by elements within the system. He emphasizes that the current cash scarcity undermines the President’s agenda and calls for a concerted effort to align the actions of all government officials with the President’s vision. Nduwuisi urges these officials to emulate President Tinubu’s commitment to delivering the dividends of democracy and prioritize the well-being of the citizenry. He stresses the importance of leveraging available resources to improve the lives of Nigerians and ensure that the benefits of economic growth are felt by all.
The cash scarcity crisis is not a new phenomenon in Nigeria. It has plagued the nation intermittently, particularly following the implementation of the cashless policy and the currency redesign initiatives earlier this year. These initiatives, while aimed at modernizing the financial system and curbing illicit financial flows, have inadvertently created significant disruptions and hardships for many Nigerians. The ensuing cash crunch has severely impacted businesses, particularly small and medium-sized enterprises (SMEs) that rely heavily on cash transactions. It has also disproportionately affected vulnerable populations, including those in rural areas with limited access to banking services. The current situation represents a resurgence of these challenges, further highlighting the need for a comprehensive and sustainable solution.
The widespread frustration among Nigerians stems from the perceived injustice of being forced to “buy” their own money at exorbitant rates from POS operators. This practice, Nduwuisi argues, is not only exploitative but also unacceptable. He highlights the irony of citizens having to pay a premium to access their legally earned funds, a situation that underscores the dysfunction within the financial system. This forced reliance on POS operators and their inflated charges has become a major source of discontent and has further eroded public trust in the banking sector. The situation has also fueled calls for greater transparency and accountability within the CBN and commercial banks.
Nduwuisi’s plea to President Tinubu reflects the growing clamor for immediate government intervention to restore normalcy and ensure equitable access to cash for all Nigerians. He emphasizes the importance of addressing this issue promptly to prevent further economic hardship and social unrest. The call for action extends beyond just addressing the immediate cash scarcity but also entails a comprehensive review of the cashless policy and its implementation. This includes finding ways to mitigate its unintended consequences and ensuring that it does not exacerbate existing inequalities or create new barriers to financial inclusion. The ultimate goal is to create a financial system that is both efficient and equitable, serving the needs of all Nigerians regardless of their location or socio-economic status.
