By Divine Sam
The ongoing cash shortage in Nigeria has sparked a blame game between Point of Sale (POS) operators and banks, as Nigerians face difficulties accessing funds, especially ahead of the Christmas and New Year holidays. Despite the Central Bank of Nigeria (CBN) revealing that a significant N3.87 trillion remains outside the banking system, local markets and rural areas continue to struggle with limited access to cash. Many vendors and farmers remain hesitant to fully embrace digital banking due to previous issues with fraudulent transactions.
POS operators, represented by the National Secretary of the Association of Point of Sale Users (APOSUN), Isah Zakari, have blamed banks for the ongoing shortage. He stated that banks have reduced the amount of cash available for POS agents, making it difficult for them to meet customer demands. Zakari also alleged that some bankers own POS outlets and are siphoning cash that should circulate through the formal banking sector, thereby exacerbating the crisis.
In contrast, some bank officials argue that POS operators contribute to the cash scarcity by hoarding funds and engaging in practices like withdrawing large amounts using multiple accounts and ATM cards, leaving ATMs empty. They claimed that this behavior, along with cash hoarding by the public, is causing a significant imbalance in the distribution of currency. Some also pointed to the role of market traders and POS operators in circulating cash outside of the banking system.
The situation has led to increased POS transaction fees and limited cash withdrawal amounts, with some individuals only able to access small sums, such as N10,000 or N20,000 per day from ATMs. Residents in areas like Nyanya, Mararaba, and Lugbe in the Federal Capital Territory have reported difficulty accessing sufficient funds for daily needs, with some resorting to alternative sources like filling stations for cash.
Despite these challenges, some bank officials have encouraged Nigerians to embrace electronic transactions more fully, noting that reliance on cash should decrease, as it is more efficient and secure in the long term. They also highlighted that the cash crisis is partly a result of public hoarding and the limited circulation of cash, not just a failure of the banks or CBN.
In summary, while POS operators and banks have differing views on the cause of the shortage, the overall impact is felt by many Nigerians who continue to face difficulties accessing cash, even during the festive season.
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