Even as analysts wonder if this was some way of combating spiraling inflation by cutting currency in circulation, the national assembly has urged the Central Bank of Nigeria to take urgent steps to curtail biting cash scarcity.
To be precise, the House of Representatives, yesterday called on the apex bank to take swift action to alleviate the growing economic burden on citizens.
During a plenary session, lawmakers emphasized the disruptive effects of the crisis, which has hindered access to funds for daily transactions, leaving many Nigerians stranded.
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Rural communities, particularly reliant on cash transactions, have been hardest hit, as they lack alternatives like digital payments.
The current situation stems from a 2022 CBN directive limiting cash withdrawals to N500,000 for individuals and N5 million for corporate entities.
Despite this policy, banks reportedly cap withdrawals at much lower amounts or fail to disburse cash entirely.
Meanwhile, Point of Sale (POS) operators seem to have unrestricted access to cash, often reselling it at inflated rates.
Lawmakers voiced concerns about the disconnect between commercial banks and POS agents and called for immediate intervention to prevent the situation from escalating, especially with the festive season approaching.
To address the issue, the House has tasked its Committee on Banking Regulations with investigating the cash shortage and reporting back within a week, while directing the CBN to resolve the scarcity urgently.
