By Milcah Tanimu
Residents of Kaduna, Kano, and Katsina States are facing extreme difficulties accessing cash. With Christmas and New Year celebrations just weeks away, the scarcity of physical cash is creating financial hardship across these states.
The situation has reignited fears of a repeat of the 2022 cash crisis, with concerns that it will disrupt end-of-year festivities.
POS Vendors and High Transaction Fees Add to Frustration
Several Point of Sale (POS) vendors have reported limited cash supplies from commercial banks. Adamu Amadu, a POS operator, revealed that they now charge N200 instead of the usual N100 per N10,000 transaction due to increased demand.
POS agent Ibrahim Nur stated that they are now serving smaller transactions (ranging between N1,000 and N10,000) because cash availability has dwindled.
Many customers have lamented the rising service rates, with some attributing the shortage to banks limiting the amount of money dispensed at ATMs. Bilkisu Moda, a frustrated customer, recounted her failed attempts to secure cash through multiple POS centers.
Kafanchan & Zaria: Struggling with Limited Cash Supply
Residents in Kafanchan and Zaria reported difficulties accessing funds. POS operators claim that bank limits on cash withdrawal have left them unable to meet customer demand.
POS operator Felicia Christopher said, “The lack of cash has impacted my business severely, and banks are only dispensing small sums daily.”
A Zaria-based businessman, Malam Bilyaminu Musa, expressed concerns about merchants having limited cash access. Despite efforts by some merchants to source funds from other regions, the shortage has significantly disrupted grain markets and local businesses.
Residents & Civil Servants Bear the Brunt in Kano and Katsina
In Kano, residents are facing similar issues. Aliyu Yakubu shared his frustration, saying many ATMs are either out of cash or malfunctioning. A civil servant, Aisha Ali, said, “It is frustrating that I can’t access my hard-earned money at the bank.”
Meanwhile, in Katsina, ATMs are mostly dysfunctional, and long queues at functional ones worsen the situation. Malam Abubakar Muhammad revealed that most banks are either out of cash or limit daily withdrawals to N20,000.
POS operators in the region have also raised concerns. They are charging higher fees (up to N200 or more per N10,000) due to the difficulties in obtaining sufficient cash. Many residents believe the government and Central Bank of Nigeria (CBN) must intervene.
Vice President Calls for Urgent Solutions
Vice President Kashim Shettima has called on Nigerian Deposit Money Banks (DMBs) to ensure the seamless availability of Naira to the public. Shettima emphasized the adverse effects on financial inclusion caused by cash scarcity.
Represented by Tope Fasua, Shettima urged financial institutions to tackle problems like high charges and POS exploitation. Reports indicate that the CBN has set up committees to monitor banking activities and address these emerging concerns.
CBN’s Response & Monitoring Efforts
The Central Bank of Nigeria (CBN) is reportedly investigating banks’ roles in exacerbating the cash crisis. Committees have been established to ensure banks adhere to fair distribution practices. Despite these efforts, banks are still struggling to meet the demand for cash at both ATMs and POS outlets.
Nura Abubakar, a POS operator in Kano, blamed commercial banks for the lack of action and transparency. According to him, “Banks are not releasing enough cash to us, and many POS terminals are down.”
What’s Next? Call for Immediate Action
Residents, civil servants, and POS operators have called on the CBN and federal authorities to take urgent steps to mitigate the situation. With Christmas approaching, the financial hardship being faced by the most vulnerable members of these communities is exacerbating concerns.
As the crisis worsens, Nigerians hope for prompt action to stabilize cash flow and reduce unnecessary suffering.
