The Cash Scarcity Blame Game: CBN Vs Banks

If you have been struggling to get cash from the bank lately, you are not alone. The cash crunch is back, and just like the last time, fingers are pointing in every direction. So, what’s the gist? Let’s unpack it.

What Banks Are Saying

Banks have been quick to claim that they are simply caught in the middle. According to them, the Central Bank of Nigeria (CBN) is not releasing enough cash to meet public demand, especially as the festive season ramps up. Bankers are also reportedly dealing with logistical challenges, including increased pressure on ATM systems and insufficient cash deliveries. Some even hint that their operations are being hindered by unclear directives from the apex bank.

On the flip side, customers are grumbling about daily withdrawal limits, long queues, and even allegations of bribery to access cash. Bank staff claim they are doing their best, but if the CBN does not release more funds, there is only so much they can do.

What the CBN Is Saying

The CBN, meanwhile, is not buying the excuses. Governor Olayemi Cardoso has insisted that the apex bank is releasing enough cash into the system and has ramped up measures to ensure compliance by commercial banks. From December 1, the CBN started spot checks and threatened penalties for underperforming banks. Customers are now encouraged to report banks that fail to dispense cash via dedicated phone numbers and emails.

Additionally, the CBN says the cash scarcity issues stem from inefficiencies and alleged malpractices by some banks. It is also advocating for a shift towards digital transactions to ease the reliance on physical cash.

Our Take on the Matter

Honestly, this cash scarcity wahala feels like a classic blame game. Both the CBN and the banks have valid points.

On one hand, the CBN deserves credit for addressing cash circulation issues and setting up reporting channels. However, it also needs to ensure its policies are practical and that enough funds are released in a timely manner to meet peak demand.

On the other hand, banks could do better in managing cash disbursement. Their customers should not have to resort to bribes or endure endless queues just to withdraw their own money. Banks also need to improve transparency and communication about daily withdrawal limits.

Questions for You

So, who do you think is to blame?

• Is the CBN doing enough, or are its measures just another round of “we’ll look into it”?

• Are banks being honest about their challenges, or are they trying to cover up inefficiencies?

• And finally, how long do you think this blame game can last before Nigerians completely lose faith in the system?

Let us know your thoughts. Maybe together, we can make sense of this mess!