Nigerians face year-end cash crisis as ATMs remain empty
With simply hours left in 2024, many Nigerians are grappling with a extreme money scarcity as most Automated Teller Machines (ATMs) throughout Lagos stay out of service.
This has pressured residents to rely closely on Point of Sale (PoS) operators, who’ve capitalised on the shortage to impose exorbitant prices for money withdrawals.
Reports from varied banks point out that clients are being turned away on account of a scarcity of money, whereas those that handle to make withdrawals are restricted to quantities between $13 and $26. Despite warnings from the Central Bank of Nigeria (CBN) to penalise banks not shelling out money, the scenario stays unresolved.
Bright Joseph, a Lagos resident, expressed his frustration:
“It’s been irritating. I’ve gone to 3 totally different banks as we speak, and none of them has money to offer. How are we purported to have a good time the season like this?”
The scenario has left residents on the mercy of PoS operators, who’ve considerably elevated their charges. For occasion, withdrawing $6.50 now attracts a charge of $0.65, in comparison with the $0.13 or $0.26 charged a number of months in the past. Larger withdrawals include even greater prices, leaving clients with no different.
Benjamin Idowu, a civil servant in Ogba, shared his expertise:
“I needed to withdraw $13 yesterday, and the PoS operator charged me $1.30. It’s unfair, however what can I do? I wanted the money.”
For many Nigerians, money stays important for every day transactions akin to transportation, meals, and minor purchases. The scarcity has severely disrupted these routines, with some blaming the CBN for failing to launch ample money to banks.
An nameless official from a tier-2 financial institution revealed that the CBN has diminished money disbursements, coupled with a decline in deposits from clients. This has made it troublesome for banks to fulfill withdrawal calls for.
While some suspect a collusion between banks and PoS operators to create synthetic shortage, operators have denied the claims. Olawale Michael, a PoS operator in Ikeja, defined:
“In the final two months, I’ve not withdrawn from the financial institution. My money comes from market girls and store homeowners preferring us to deal with their deposits.”
Another operator, Mrs. Nkechi, disclosed that she sources money from a close-by fuelling station at a further value, which she passes on to her clients.
“If I might withdraw from the financial institution, the fees could be regular. But since I’ve to pay additional to get money, I’ve to regulate my charges,” she stated.
In September, the CBN introduced plans to sanction banks failing to dispense money by way of ATMs. Governor Yemi Cardoso assured the general public {that a} monitoring system would guarantee compliance.
However, as of now, no financial institution has been penalised, and the ATMs stay empty.
