He spent hours in his bank on Friday, but all he was able to get was N2000, not enough to get by. "I had planned to travel with my family yesterday, December 23, but I had to postpone my movement because there is paucity of cash," he said to The Guardian. In order to acquire what little I already have for my vacation tomorrow, which is today, I had to spend additional money.
Paul Eghieye is suffering from the same fate: a lack of money. "I had a burial to attend in my village, Ogbona, Edo State between December 21 and 22, but I couldn't go," Eghieye said to The Guardian. You don't use transfers for every transaction, and to make matters worse, everything is incredibly pricey. Something is not right with the world.
"When it happened in January, some believed it was related to the election. What is going on now? Is there going to be another election around Christmas?According to Bode Osunkunle, "I had to spend N300 to get the highest amount I have been able to get from these Point of Sale (POS) agents, which is N5,000."
Many families have bemoaned the current financial crisis as they get ready to celebrate Christmas this year, claiming it has interfered with their plans.
Traders and shoppers from Lagos to Abuja and other areas of the nation bemoaned having to reassess their seasonal preparations due to the lack of cash at commercial banks and Automated Teller Machines (ATM).
Benard Obayi, a wholesale dealer of clothing and other accessories at the IBB Market in Suleja, Niger State, told The Guardian that the financial crisis is to blame for the sales declines that were not anticipated.
"As I speak with you, the only firms that are surviving are those that take cash transfers; consumers can no longer purchase our stuff. It's an unexpectedly challenging scenario, particularly given the festive season.
Additionally, dealer Anthonia Akpochi bemoaned her poor sales, stating: "I sell plantain, yam, and fried fish. Everyone has been impacted by the crisis, but for me personally, it means that I am not selling as much since clients are complaining about how expensive my products are.
"I took out N30,000 from a POS agent today, and he took N800 from me. I would account for everything when I purchase goods and resell them to clients in order to earn a tiny profit. Thus, the market is not moving as quickly as it ought to. The only one who can save our nation is God.
Pastor Emmanuel Jonah, who was spotted in a bank on Murtala Muhammed International Airport Road in Lagos, shared his story with The Guardian and bemoaned the hours he spend there only to get cash out.
Jonah revealed that he had canceled his plans to go on any Christmas vacations and go on any fun hunts after learning that customers could only withdraw N20,000.
"The problem is that most people these days are sceptical, especially since there isn't any money in the bank right now," Jonah remarked. They would just inform you that you can only withdraw N20,000 if you wish to withdraw. For example, the ATM at the bank I've been visiting for a while was not functioning. It seemed like nothing was working when I had to go to the banking hall. It's been difficult, and the circumstances are really painful.
The family's needs right now are how to put food on the table, so fun seeking is out of the question. Thank God, from December 21 to December 26, 2023, I have a church program to attend. Even if I had considered it previously, I'm not considering traveling because of the unfavorable economic climate in the nation.
Jonah went on, "There has been an outcry from Nigerians that the situation in the country is bad, but the government seems not to respond to people's outcry but we still believe God to do something within the government circle." Jonah called on the government to address the current state of the land. The key is to listen to the people you are reigning over in order to understand their thoughts and feelings on your leadership. Mrs. Helen Emmanuel, a resident of Lagos, also voiced her displeasure with the lack of naira.
When you visit the bank, you won't be able to retrieve your own funds. You would only get N20,000 if you go to the ATM; imagine what that will do for a family? Some POS providers may charge you N800 for providing you with N20,000, while others will charge you N600 for N20,000. One is simply worn out. Emmanuel remarked, "I'm only stressed out because I want to travel; otherwise, I would just stay home and take care of my family."
Mrs. Beatrice Vincent Isang, a nursing mother, frequently uses POS agents, but she strapped her infant on her back and proceeded to the bank to take out cash from any of the nearby ATMs when she found that the POS agents were not giving out cash.
"Normally, I collect cash from POS agents, but I decided to come to the bank to see if I could get some money when the charges became high," Isang stated. At first, the POS personnel cost me N100 whenever I collected N5,000 from them, but they are now demanding N200. I so concluded that I ought to visit the bank rather than paying N200. Actually, I walked to Airport Road from my home on Ijaiye Street in Mafoluku Oshodi. However, when they arrive, the ATMs are not giving out cash. I feel terrible now. I've been trekking in the sun to obtain N5,000, but the ATMs aren't working. I might have to postpone my planned trip to my home state of Cross River with my family if this economic crunch persists," she stated.
But according to Miss Kate Bakare, a point-of-sale agent in Lagos, commercial banks now sell them N100,000 for N2,000, and they charge N300 for each N5,000 withdrawal.
She said, "This is because there is a cash shortage, which has an impact on market prices for goods." Mr. Henry Afolabi, a different resident, claimed that a well-known first-generation bank had stopped loading money into its ATMs two weeks ago.
Additionally, Mr. Godwin Balogun stated, "I usually take out cash from the ATM on the weekends, especially on Saturdays." This is a result of the line always having fewer people in it.
However, I was unable to get cash from any of the bank ATMs on Airport Road in Lagos today. "When I initially visited the UBA Osolo Way branch at the 7/8 Bus Stop, I discovered that the ATMs were not working. The bank security personnel told me to come back at noon.
There were no fewer than ten different bank branches on Ladipo Street, Mushin Local Government Area of Lagos State. "I went to the nearby UBA branch on Ladipo Market, but the story was the same, no cash in the ATMs." I went from one to each of them. I went to the GTB, Fidelity, First Bank, Access Bank, FCMB, Zenith Bank, Keystone Bank, and Stambic IBTC branches. However, none of their ATMs were cashing out.
When I returned to the UBA at the Osolo Way branch just after midday, I was informed that nothing had changed. At the UBA Ilupeju branch, the same thing happened.
In spite of difficulties with price increases, Balogun urged the government to find a long-term solution to the cash shortage issue so that people may spend Christmas and New Year's Eve with whatever they could afford. "I want the Central Bank of Nigeria (CBN) to support the general public by giving them access to enough cash," he continued. Mr. Akin Benjamin, an education consultant, compared the financial hardship that citizens are going through to rain beating dogs and kittens.
However, there is a very subtle pressure on Nigerians to use online payment methods and minimize their cash transactions.
He said, "I am coping because I actually prefer to pay online and only carry a small amount of cash for transactions under N1,000." To make life easier for those living in rural regions and among the less educated residents, he recommended the government to take greater steps to educate them about the cashless policy.
Sadly, they are more than just city people. According to Benjamin, the majority of Nigerians are illiterate and reside in rural rather than cities. Dr. Odusolu Yetunde, a consultant public health physician at Lagos University Teaching Hospital (LUTH), advised Nigerians to make life adjustments based on lessons learned from the past.
"I learned about the cash constraint problem from the news on social media," Yetunde stated. "Customers that went to the banks were given N5,000, which was pitifully little in comparison to what they demanded.
My perspective on this is that Nigerians do not really learn enough from any situation. We easily forget our sorrows/pains and experiences and move on with life without using the experiences we had to improve our lot or take necessary actions in the future. "I also got to know about the dire situation from a church member who is involved in the POS business."
"People literally had to resort to 'buying of money' and many other attendant frustrations, leading to loss of lives and properties, among other challenges, as a result of the monetary policy and change of the naira denominations, which was activated in February of this year.
The monetary policy increased public awareness of the ways in which cashless financial transactions may be conducted. The majority of people, along with small companies, learned how to use these cashless methods—such as bank transfers and point-of-sale systems—to transact and grow their enterprises.
"I think we can make sure we survive this cash crunch by making sure we do cashless transactions and carry less cash around by applying the lessons we learned in February of this year."
According to Odusolu, a cashless economy could lead to a decrease in crime, fewer kidnappings, a decrease in theft, fraud, and corruption, better security, increased public awareness of money handling through technology, and most importantly, time and money savings from quicker transactions.
Although there are drawbacks to a cash crisis situation, the advantages of a cashless economy outweigh the risks. We may go cashless even during this holiday season, when there is a greater fervor and excitement surrounding purchasing and selling.
"We should treat things as normal and embrace digital technology in handling money, including cash transfers and point-of-sale systems, but we must always exercise caution and wisdom," she said.
Prof. Pat Utomi, a founding member of the Lagos Business School, asserted that it is extremely detrimental for people to be without access to cash during the holiday season.
He claims that the volume of transactions that occur in people's homes and nations over the Christmas season helps numerous economies.
The CBN should make sure that there is cash available for use during this festive season, according to Utomi, who also stated that while going cashless is a good thing, it must be done gradually and gradually until a significant portion of the population is banked. "It is clearly not a nice one in Nigeria for people not to have access to the naira at Christmas. This could make a complete knock down for families and persons, economy, and the country," he continued.
"Of course, I'm aware that the CBN has been pushing for a cashless economy. The implementation could be gradual because millions of Nigerians do not have bank accounts and are therefore not part of the transaction; keep in mind that the economy is small. Even those who have bank accounts do not have facilities after transfers; they still encounter difficulties cashing such monies," Utomi continued.
Prof. Sheriffdeen Tella of the Department of Economics, Onabisi Onabanjo University Ago-Iwoye, Ondo State, added, "You can't imagine people going to ATMs or in the banks and are told no cash; this is frustrating." He said the development affected sellers as well as buyers and, implicitly, producers.
Small businesses are severely impacted by this, he said, "even though there are alternatives for medium-sized and large businesses in terms of e-banking. Of course, trust in banking services is being lost because many people's cash are trapped. It seems the implications for the economy are lost to CBN."
In addition, the Center for Anti-Corruption and Open Leadership (CACOL) has expressed disapproval of the current shortage of Naira that is occurring throughout the nation.
On behalf of the chairman, Mr. Debo Adeniran, CACOL's Director of Administration and Programs, Tola Oresanwo, issued the following statement: "We have observed that naira scarcity has resurfaced in the country barely a year after the CBN redesign that ended up as a colossal fiasco and subjected our people to untold hardships."
According to reports, banks began enforcing daily individual withdrawal caps of N20,000 to N40,000 last month. This was mostly because their vaults were running low on cash. The situation has not improved despite the Central Bank's repeated assurances to the public that it has provided the banks with adequate cash in an attempt to allay their fears. As of right now, some banks only allow withdrawals of up to N10,000. This oddity shouldn't be happening at this time of year because the holiday season is quickly approaching and most of the people who rely on cash transactions will probably need more money to complete their numerous purchases.
Using this platform, we would want to demand that the Federal Government and the Central Bank do every effort to ensure that there is adequate money in circulation since our people should not be treated like slaves in their own country. They deserve to have access to money whenever they need it because they have worked hard to get it. Timely intervention saves nine. In order to avoid the government appearing to be pushing the vast majority of people who are already suffering from the misgovernance of a small number of people to the brink, the situation shouldn't be allowed to worsen beyond what it is at this point. This could have disastrous effects on the nation's economy as well as peace and tranquility in general.
After weeks of low naira note circulation, The Guardian noted that cash transactions have improved in Kano State. Additionally, information was obtained indicating that major financial institutions in the state had stopped implementing the earlier policy of capping bank customers' withdrawal amounts using cash after the CBN intervened.
The shortage of currency has recently improved, according to Muhideen Fesobi, a meat vendor at Kano's Yankura market, as more people are entering the market with different sized naira notes.
As of right now, over 80% of my clients arrive at the market with cash in hand, thus there is no longer a cash shortage. Two weeks ago, things weren't good, but now they're back to normal," he stated.
"I don't think there is a shortage of cash again in Kano because as I am talking to you, I withdrew money from the bank today and yesterday and there was nothing like cash limit," businessman Ike Jerry added. These days, no one faces difficulties when taking out their money. Jerry said, "All we can hope is that there won't be any more issues before Christmas."