Naira scarcity: PoS agents hike transaction fees, banks ration cash

Bank customers’ agony over the prevailing cash scarcity increased, yesterday, as more banks resorted to rationing cash withdrawals while Point of Sale Operators, PoS, operators, hiked transaction fees by 100 per cent.

Meanwhile, the Central Bank of Nigeria, CBN in a move aimed at ameliorating the situation, suspended charges for cash withdrawals above the regulatory limits of N500,000 for individuals and N3 million for corporate account holders. The CBN said that the suspension of the charges would last till April 30th next year.

Announcing the suspension in a circular to banks entitled, ‘Re-Processing Fees on Cash Deposit’, the acting Director, Banking Supervision, CBN, Dr. Adetona Adedeji, said: “Please recall the processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporates as contained in the “Guide to Charges by Banks, Other Financial Institutions and NonBank Financial institutions’ issued on December 20, 2019, under reference FPR/DIR/GEN/CIR/07/042.

“The CBN hereby suspends the charging of processing fees of two percent and three percent previously charged on all cash deposits above these thresholds with immediate effect. This suspension shall remain in effect until April 30, 2024.

“Consequently, all financial institutions regulated by the CBN should accept all cash deposits from the public without any charges going forward.”

Vanguard’s visits to bank branches in Lagos and Abuja showed more customers experienced difficulty accessing cash as the ATMs in most of the bank branches did not dispense cash while the banks imposed limits on cash withdrawal in a bid to ration the available cash.

Like the beginning of the year, when Nigerians faced biting cash scarcity, banks now prioritise customers holding accounts with them, while rationing available cash to make it get to as many customers as possible.

While some still maintain the N100,000 daily withdrawal limit in tranches of N20,000 through ATMs, others have since reduced the amount dispensed through the ATMs.

Also, POS agents who spoke to Vanguard confirmed the unavailability of cash at the banks, saying that they hardly get the amount they requested from the banks in the last one month.

The escalating Naira scarcity in banks has left residents of the Federal Capital Territory grappling with frustration and inconvenience.

Vanguard reports that bank customers and even POS, operators in Abuja have been struggling to withdraw cash from ATMs and were often faced with long queues and limited services at banking halls.

“I have been to three different banks today and none of them has enough cash to give me. It’s very frustrating. We can’t even access our money when we need it the most,” said Bola Adeyemi, a civil servant residing in Abuja.
Another customer at an old generation bank in Nyanya, Abuja, Eno Effiong, said: “It’s frustrating that we’re living in the capital city and still facing such cash scarcity issues. I came to the bank to withdraw N15,000 but I was told I could only get N10,000. I mean, isn’t Abuja supposed to be one of the most developed and well-equipped cities in Nigeria? It’s high time the government acted upon this and ensured that banks have enough cash to cater to our needs.”

A Nasarawa State Polytechnic student, Apindo Patience, said: “I just don’t understand why they can’t manage the cash flow properly in the banks. It’s not like Abuja is a small town with limited resources. The inconvenience caused by this scarcity is undeniable, especially when we have important bills to pay and can’t access the desired amounts of money from our own accounts.”

An Abuja trader, who identified herself as Genevieve Johnson, said: “The lack of cash in the banks has definitely made life more difficult for us. Even simple tasks like grocery shopping or paying for transportation have become a hassle when you can’t withdraw the required cash. It’s causing unnecessary stress and inconvenience in our daily lives.”

Also, a POS operator, Asmau Usman, said: “Since yesterday, I have been struggling to get money. I have only been able to gather small. Now, we don’t collect N100 for N5000 again, it’s N150. This is because banks are giving little or nothing.”

Another POS operator, Emeka Ugwu, said: “I sent my boy to some money in two different banks since morning and he is not yet back. The last time I called him, he was only able to get N10,000. For now, everything has increased and Nigerians are going through hell. People spend hours waiting in long queues, only to be told that there’s not enough cash available. It’s a pity.”