4 Apr 2025
- 15 Comments
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.
Shaun Collins
April 4, 2025CBN messed up big time
Chris Ward
April 5, 2025Honestly i think the whole cash thing is overblown, its just a lil hype that folks are feeding each other . but maybe there is some truth that i cant see atm
Heather Stoelting
April 6, 2025Wow this is a massive issue! We need to rally together and push for transparency. The workers are doing their best under tough constraints and deserve our support. Let’s keep the conversation alive and demand real solutions.
Travis Cossairt
April 7, 2025looks like banks are just stuck in a loop, cash cant get to the people and the ATMs stay dry . i guess the system needs a tune up
Amanda Friar
April 8, 2025Sure, let’s all pretend the cash shortage is just a minor hiccup while the elite sip their coffee. The reality is folks are scrambling for change and the system is laughing.
Sivaprasad Rajana
April 9, 2025The supply chain for cash in Nigeria relies heavily on the central bank. When the bank withholds funds, the downstream banks cannot meet demand. This creates a bottleneck that shows up as empty ATMs.
Andrew Wilchak
April 10, 2025Dude the whole thing feels like a circus right now. Banks say they need millions daily, then claim they cant get it. Meanwhile POS operators are selling cash like it’s candy. Who’s really profiting here? The ordinary person is stuck.
Roland Baber
April 11, 2025It’s easy to feel frustrated, but remember that systemic change takes time. Focus on what you can control – maybe push for digital solutions that bypass the cash chokehold.
Phil Wilson
April 12, 2025The current liquidity crunch in Nigeria can be analyzed through the lens of monetary transmission mechanisms, where the central bank’s policy stance directly influences the cash allocation matrix across commercial institutions. Empirical data suggests that the reduction in base money supply has a cascading effect on secondary market liquidity, constraining the operational bandwidth of bank branches. Moreover, the POS network’s informal cash arbitrage introduces asymmetrical risk premiums that distort the equilibrium price of physical currency. From a macroprudential perspective, the central bank’s reluctance to disclose granular circulation statistics hampers real‑time risk assessment and undermines market confidence. In practice, this opacity fuels speculative behavior among informal traders, who capitalize on arbitrage opportunities at the expense of end‑users. The festive season amplifies demand elasticity, as consumer spending spikes and cash turnover accelerates. Consequently, the minimum daily cash requisition of ₦20 million per bank becomes a critical threshold for maintaining transactional continuity. If banks are unable to meet this threshold, ATM downtime escalates, leading to a feedback loop of reduced cash accessibility and heightened public anxiety. Policy recommendations include instituting a transparent cash flow reporting framework, staggered cash distribution schedules aligned with regional demand forecasts, and incentivizing electronic payment adoption through tiered fee structures. Additionally, integrating blockchain‑based settlement layers could provide immutable audit trails for cash movements, thereby deterring illicit diversion. Finally, a coordinated effort between the central bank, regulatory bodies, and security agencies is essential to dismantle the informal cash resale networks that exacerbate scarcity. By addressing both the supply‑side constraints and demand‑side inefficiencies, Nigeria can restore liquidity stability and mitigate the risk of a systemic banking crisis.
Roy Shackelford
April 13, 2025Of course the whole “cash shortage” narrative is just another ploy by foreign bankers to destabilize our economy. They want us dependent on digital fiat so they can control every transaction. Wake up, patriots.
Karthik Nadig
April 14, 2025🔥💸 Absolutely, the shadowy cabal behind the CBN is pulling strings. It’s all part of the globalist agenda to strip us of cash freedom. 🌍🚫
Charlotte Hewitt
April 15, 2025Honestly i think there’s a secret group feeding the rumors, like they want us all scared and buying their crypto scams.
Jane Vasquez
April 16, 2025Right, because the only thing Nigerians need is more crypto, not actual cash to buy food 😂
Hartwell Moshier
April 17, 2025It seems the key is better communication between the CBN and banks to avoid these shortages.
Jay Bould
April 18, 2025Indeed, fostering financial literacy and embracing both cash and digital options can help bridge the gap in communities.