The House of Representatives on Tuesday expressed alarm over the ongoing cash scarcity in commercial banks, urging the Central Bank of Nigeria to take swift action to resolve the crisis that has disrupted economic activities and inflicted hardship on Nigerians.
This concern arose during plenary following a motion of urgent public importance moved by Hon. Uguru Emmanuel, who described the situation as a severe economic and social challenge.
In presenting the motion, Emmanuel detailed the adverse effects of the cash crunch, noting that many Nigerians are unable to access funds for even their most basic needs. He stressed that consumer spending and business investments—key drivers of economic growth—have been severely hindered by the persistent shortage.
“Entrepreneurs and individuals are subjected to long queues, sometimes spending days at banks without success. This situation has particularly affected rural dwellers who rely on cash for transactions and lack access to digital payment systems,” Emmanuel stated.
The lawmaker also criticised the failure of commercial banks to adhere to the CBN’s cash withdrawal limits announced on December 21, 2022, which allowed ₦500,000 for individuals and ₦5 million for corporate entities. Instead, banks have reportedly restricted cash withdrawals to as low as ₦10,000—or no cash at all.
He expressed frustration over the apparent availability of cash with Point of Sale operators, questioning how they are able to access funds while banks remain cash-strapped.
“Where do POS operators get their cash from while banks remain dry?” Emmanuel asked, highlighting concerns of irregularities in cash distribution.
Emmanuel warned that the cash scarcity could worsen with the festive season approaching, further straining businesses and plunging citizens into deeper financial distress.
“The situation demands immediate intervention. If not addressed, it will exacerbate the frustrations of businesses and citizens alike,” he added.
In response to the motion, the House adopted a resolution mandating its Committee on Banking Regulations to investigate the root causes of the cash scarcity and submit a report within one week. The House also directed the CBN to urgently clarify its role and take necessary steps to alleviate the crisis if it is not responsible for the shortage.
