Reps Call On CBN To Resolve Cash Crisis As Economy Worsens

Reps Call On CBN To Resolve Cash Crisis As Economy Worsens

On Tuesday, the House of Representatives expressed serious concern regarding the ongoing cash crunch in commercial banks throughout the country…READ MORE…

urging the Central Bank of Nigeria (CBN) to take action to alleviate the crisis, which has disrupted economic activities and inflicted considerable hardship on citizens.

This call came after Hon. Uguru Emmanuel moved a motion of urgent public importance, highlighting the severe economic and social consequences of the cash scarcity that has left many Nigerians unable to access funds for even basic necessities.

Emmanuel pointed out that economic growth significantly depends on consumer spending and business investment; however, the persistent cash shortage has become a formidable barrier to these essential activities.

He recalled that in its policy directive dated December 21, 2022, the CBN established cash withdrawal limits of ₦500,000 for individuals and ₦5 million for corporate bodies. Despite this, he noted that commercial banks have largely ignored these limits, frequently restricting cash withdrawals to as little as ₦10,000 or even less.

“Entrepreneurs and individuals face long queues and often spend days at banks without success. This issue has particularly impacted rural residents who rely on cash for transactions and do not have access to digital payment systems,” Hon. Emmanuel lamented.

He also raised concerns about the apparent disconnect between commercial banks and Point of Sale (POS) operators, who appear to have unhindered access to cash, often offering it at inflated rates. “Where are POS operators obtaining their cash from while banks remain empty?” he questioned.

The lawmaker cautioned that without prompt action from the CBN, the situation could deteriorate further, especially with the festive season approaching, potentially leading to frustrated businesses and deeper economic struggles for citizens.

In response, the House resolved to task the Committee on Banking Regulations with investigating the cash crunch in commercial banks and reporting back within one week. They also directed the CBN to urgently address the cash shortage, assuming it is not directly responsible for the issue.

For More Information And News Update, Join Ireporteronline WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32 For advertisement inquiries only, kindly send a message to 09010649814 on Whatsapp