Despite the Central Bank of Nigeria’s (CBN) directive for banks to ensure cash availability at branches and Automated Teller Machines (ATMs), customers across the country continue to face difficulties accessing cash,leadership reports.
Reports indicate that many ATMs remain out of service, while banking agents, known as Point of Sale (PoS) operators, have resorted to sourcing cash from major markets and fuel stations to meet demand.
Findings by LEADERSHIP Sunday reveal that only a handful of ATMs are dispensing cash, often with withdrawal limits. Cardholders from other banks can typically withdraw no more than ₦10,000, while some customers of the same bank are limited to ₦20,000.
CBN Governor Olayemi Cardoso, during a briefing on November 29, 2024, acknowledged the persistent challenges with cash availability, an issue that has plagued Nigerians since February 2023. This scarcity has forced many bank customers to rely on PoS operators, who often charge exorbitant fees for cash withdrawals.
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To address the problem, Cardoso announced that the apex bank would conduct spot checks at Deposit Money Banks (DMBs) and impose penalties on non-compliant institutions. Customers were also encouraged to report issues with cash withdrawals directly to the CBN via designated phone numbers and email addresses for their states.
However, compliance by banks has been inconsistent. Several bank branches visited had only one ATM dispensing cash, with customers restricted to small withdrawal limits. In some cases, ATMs were completely out of service, forcing customers to enter the banking halls to access cash, often with further restrictions.
A dissatisfied customer, speaking anonymously, said: “I visited several ATM locations, but none were dispensing cash. I had to return home without money, despite the CBN’s assurances that cash is available.”
At a new-generation bank in Lagos, only customers with the bank’s debit cards could withdraw up to ₦20,000, while those with other banks’ cards were limited to ₦10,000. At other branches, security personnel confirmed that no cash was available at ATMs, requiring customers to withdraw from inside the banking halls.
Meanwhile, PoS operators have turned to alternative sources, including markets and fuel stations, to acquire cash. Some operators disclosed that they book cash in advance from traders and wholesalers, who prefer cash transactions to avoid issues with failed transfers or fake alerts.
“We get cash from traders, cow sellers, and fuel stations,” one PoS operator explained anonymously. “But because of the competition among PoS operators, we have to pay in advance and hope to receive the cash the following day.”
Another operator revealed that banks often impose over-the-counter withdrawal limits of ₦10,000 to ₦50,000, making it challenging to rely on them for cash. “I now depend on deposits from customers and cash sourced from traders,” she said.
The high charges by PoS operators were attributed to operational costs and the difficulty of sourcing cash.
Governor Cardoso has reiterated the need for full regulatory compliance from all financial stakeholders, including Mobile Money operators and PoS agents, warning that institutions found guilty of malpractice or sabotage would face severe penalties.
He also assured Nigerians of the CBN’s commitment to maintaining a robust cash buffer, particularly during peak periods such as the festive season, to ensure smooth cash flow and build trust in the financial system.
