The Central Bank of Nigeria (CBN) has voiced concerns over the apparent collaboration between Deposit Money Banks (DMBs) and Point-Of-Sale (POS) operators, creating a shortage of cash during the holiday season.
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| One thousand, five hundred and two hundred naira notes (L-R). |
The Central Bank of Nigeria (CBN) has voiced concerns over the apparent collaboration between Deposit Money Banks (DMBs) and Point-Of-Sale (POS) operators, creating a shortage of cash during the holiday season. The regulator has initiated investigations into these alleged collaborations, emphasizing the potential detrimental impact on the nation's economy. Warning both banks and POS operators, the CBN urged an immediate halt to such practices. An estimated USD 43 billion economic cost was attributed to the cash crunch experienced in Nigeria earlier this year.
In a statement, Sidi Ali Hakama, the Acting Director of Corporate Communications at the CBN, declared, “The CBN has, therefore, warned banks and POS operators to desist from such activities as relevant sanctions shall be meted out to those found wanting.” The public is encouraged to utilize alternative payment channels and report any unauthorized activities, including capping and hoarding by banks or POS agents.
This directive follows a series of events impacting cash availability in Nigeria. A currency redesign by the CBN earlier this year triggered a four-month cash crunch, limiting access to funds for Nigerians. The recent return of cash scarcity has led to disruptions at ATMs and lengthy queues at banks.
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