Amid an escalating cash crunch, the Nigerian House of Representatives has demanded an investigation into the operations of commercial banks and point-of-sale (PoS) operators, urging the Central Bank of Nigeria (CBN) to address the growing naira scarcity.
Many banks have recently reduced withdrawal limits, with customers initially allowed N10,000 per transaction now restricted to as little as N5,000 or even N2,000. This comes after the CBN imposed a daily cash withdrawal limit of N100,000 per customer for PoS transactions.
The House, led by Speaker Tajudeen Abbas, has urged the CBN Governor, Olayemi Cardoso, to take immediate steps to alleviate the hardships caused by the cash shortage.
In a motion raised under Matters of Urgent Public Importance by Representative Uguru Emmanuel, the Green Chamber highlighted the widespread economic and social challenges resulting from the scarcity. Emmanuel emphasized that economic growth relies heavily on consumer spending and business investments, both of which have been severely impacted by the ongoing cash crunch.
The lawmaker also expressed concern over the apparent disconnect between commercial banks and PoS operators, which has further exacerbated the difficulties faced by Nigerians in accessing cash for their daily needs.
The House resolution underscores the urgent need for coordinated efforts between the CBN, banks, and other financial stakeholders to restore normalcy and ease the burden on citizens.
As reported by The Nation, he wondered where PoS operators get their cash from.
“Entrepreneurs and individuals are subjected to long queues, sometimes spending days at banks without success. This situation has particularly affected rural dwellers who rely on cash for transactions and lack access to digital payment systems,” he lamented.