4 Apr 2025
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In recent days, Nigeria has been grappling with a significant cash shortage, and fingers are pointing squarely at the Central Bank of Nigeria (CBN). The Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) has been vocal about the issue, criticizing the CBN for not providing enough cash to meet the demands of commercial banks. According to ASSBIFI President Olusoji Oluwole, banks in Nigeria rely heavily on the CBN and retailers for their cash supplies. However, the CBN has failed to provide adequate funds, and retailers have taken to selling cash to point-of-sale (POS) operators for profit, rather than returning it to the banking system.
This cash crisis is hitting particularly hard as the festive season looms, a time when cash flow is typically crucial. To operate effectively, banks need at least ₦20 million daily, which includes ₦8 million just to keep ATMs running and ₦4 million for counter transactions. Oluwole explained that banks are not deliberately hoarding cash; they simply do not have enough supply to meet the demand.
Oluwole has urged the CBN to disclose transparent statistics on cash circulation, which would help in creating a more efficient distribution system. He also pushed for a transition towards a cashless economy, citing it as a global standard that improves efficiency. Moreover, he called on security agencies to tackle the illegal trading of currency, which includes looking into how POS operators are sourcing cash from unlikely places such as fuel stations and supermarkets.
The Human Rights Writers Association of Nigeria (HURIWA) has joined the critique, condemning the CBN and its governor, Olayemi Cardoso, for poor monetary policy management. HURIWA argues that these policies are worsening hardships, especially in rural communities and among small businesses and daily wage earners. The association has been vocal in calling on President Bola Tinubu to step in and stabilize Nigeria’s banking sector, to prevent a collapse.
Meanwhile, social media has become a hotbed for discussions on the cash crunch. Inflationary pressures and high fuel prices (reportedly as much as ₦1,200 per liter) are said to be fueling an increased demand for cash. Critics say CBN’s current policies, including initiatives to transition into a cashless system, have inadvertently aggravated cash shortages, despite what may have been intended as solutions.
Both ASSBIFI and HURIWA are demanding accountability. HURIWA, for its part, has called on the National Assembly to summon the CBN Governor to address these issues. The pervasive sentiment is that without transparency, accountability, and comprehensive reforms, Nigeria could be in for an even rougher financial ride.
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