Cash Crisis Deepens Across Northern Nigeria as Christmas Nears
By MOHAMMED DANBABA
Residents in Kaduna, Kano, and Katsina States are grappling with an acute cash shortage just weeks before Christmas and New Year celebrations. The situation has sparked concerns reminiscent of the 2022 Yuletide cash crunch, with residents and business owners urging authorities to address the crisis.
POS Operators Struggle Amid Severe Cash Crunch
Point of Sale (POS) operators in Kaduna report limited cash supplies, forcing them to increase transaction charges. Adamu Amadu, a POS agent, shared that he now sources cash privately at higher costs, resulting in a doubling of service charges from N100 to N200 per N10,000 transaction.
Another operator, Ibrahim Nur, said he only caters to small withdrawals of N1,000 to N10,000 due to the shortage. Customers have also voiced frustration over the high charges, with some trekking long distances to access cash at automated teller machines (ATMs).
Kano Residents Turn to Alternative Payment Methods
Kano residents report widespread ATM outages and minimal cash availability at commercial banks. POS agents like Nura Abubakar blame the banks for insufficient cash supply, while residents like Aliyu Yakubu criticize the inefficiency, urging authorities to investigate and sanction culpable banks.
Civil servant Aisha Ali expressed her struggles in accessing her hard-earned money, adding that the crisis has disrupted her ability to purchase household essentials.
Katsina Residents Face Heightened Challenges
In Katsina, the cash shortage has led to long queues at ATMs and increased charges by POS operators. A POS agent revealed that banks now charge operators N1,000 for every N100,000 withdrawal, compelling them to raise their fees.
Residents like Tukur Hamza have turned to POS outlets as an alternative but face difficulties due to the scarcity of cash at these centers as well.
Grain Merchants Navigate the Cash Crisis
Grain traders in Zaria, Kaduna, report significant disruptions in business operations. According to Malam Bilyaminu Musa, some merchants have reverted to sourcing cash from Abuja and other regions. Many farmers still prefer cash transactions, citing distrust of bank transfers and fears of fake alerts.
Federal Government Urged to Act Swiftly
Vice President Kashim Shettima, represented by Special Adviser Tope Fasua, called on banks to ensure seamless cash availability during the 2024 Bankers’ Committee Retreat in Abuja. He emphasized the need to regulate rogue POS operators accused of exploiting customers with exorbitant charges.
Additionally, the Central Bank of Nigeria (CBN) has reportedly set up committees to monitor banks’ cash distribution practices, aiming to curb unwholesome activities contributing to the scarcity.
