Amid the ongoing cash scarcity, Nigerians faced significant challenges on Christmas Eve as Automated Teller Machines (ATMs) in many banks ran out of cash. This shortage allowed Point of Sale (PoS) operators to exploit the situation by hiking transaction fees,leadership reports.
A survey conducted in Lagos revealed that PoS operators charged between ₦800 and ₦1,000 for withdrawals of ₦20,000, while withdrawals of ₦5,000 or less attracted charges of ₦200 to ₦300. This occurred despite warnings from regulatory authorities about imposing sanctions on banks failing to stock their ATMs with sufficient cash.
Visits to several bank branches showed that many ATMs were empty, while others limited withdrawals to ₦5,000 or ₦10,000 for non-bank-issued cards and ₦20,000 for their own cards. The few functioning ATMs had long queues, as many customers avoided the steep fees imposed by PoS operators.
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A PoS operator named Okolie explained the reason for the increased charges. He noted that sourcing cash was difficult and that he often relied on customers paying cash for groceries in his shop. “But all the people buying things since morning are doing transfers, and I couldn’t get cash even in the banking hall. I had to hustle for the little cash I have, which is why I’m charging ₦300 for ₦5,000,” he said.
A bank customer, who preferred to remain anonymous, shared her struggles: “I’ve been making transfers for most of my last-minute Christmas shopping, but some things require cash, like paying for transport. I also can’t afford not to have cash for emergencies tomorrow, as it’s Christmas. If the bank networks fail, I’d be stranded.”
Many banks closed early ahead of the holiday, with some branches shutting their doors as early as noon, while others closed by 1 p.m. Customers who visited the banking halls to withdraw cash also faced challenges, as several ATMs were out of service.
Meanwhile, the volume of Nigeria’s currency outside the banking system reached a record high of ₦4.2 trillion in October 2024. Data from the Central Bank of Nigeria (CBN) showed a steep rise from ₦792 billion in January 2023, when the introduction of new Naira notes and the withdrawal of older ones began.
In October 2024, total currency outside banks rose from ₦4 trillion in September to ₦4.2 trillion, while total currency in circulation increased to ₦4.5 trillion, up from ₦4.3 trillion the previous month. The country’s total money supply stood at ₦107.6 trillion in October, slightly lower than ₦109.4 trillion recorded in September.
