The House of Representatives has expressed concerns over scarcity of cash across the country.
It was then that the Green House of the National Assembly asked the Central Bank of Nigeria, CBN, to remedy the situation which has imposed considerable hardship on Nigerians.
In one move Filed under Issues of Urgent Public Importance by Uguru Emmanuel, the House highlighted the serious economic and social implications of lack of liquidity, which has left many Nigerians unable to access funds even for basic needs.
According to Emmanuel, while economic growth relies mainly on consumer spending and business investment, the continued lack of liquidity has become a major obstacle to these activities.
He recalled that the CBN, in its policy directive dated December 21, 2022, set cash withdrawal limits at N500,000 for individuals and N5 million for businesses.
The lawmaker, however, noted that commercial banks have largely ignored this policy, often limiting cash withdrawals to just N10,000 or not at all.
“Businessmen and individuals are subjected to long queues, sometimes spending days in banks without success. This situation has particularly affected residents of rural areas who rely on cash for their transactions and do not have access to digital payment systems,” he lamented.
He further raised alarm over the apparent nexus between commercial banks and point of sale (POS) operators, who appear to have unlimited access to cash, often selling it at exorbitant rates.
“Where do POS operators get the money while banks run dry?” he asked.
The lawmaker warned that if the CBN does not take immediate action, the situation could worsen, especially as the festive season approaches, leaving businesses frustrated and citizens in deeper economic distress.
In its resolution, the House of Representatives directed the Commission on Banking Regulation to investigate the liquidity crisis in commercial banks and report back within a week.
The House called on the CBN to urgently address the liquidity shortage if it is not responsible for it.
