Findings by Legit.ng show that Nigerian banks are rationing cash in over-the-counter withdrawals and ATMs.
The development comes amid worsening cash scarcity nationwide, leading to Point-of-Sale (PoS) operators exploiting the situation to hike their charges by as much as 100%.
Banks impose N10,000 cash withdrawal limit
Visits to some banks in the Lagos metropolis show that the banks have imposed an over-the-counter withdrawal limit of N10,000 per transaction and ATM cash withdrawal of N5000.
When asked the reason for the new limit, a Zenith Bank staff member in Marina, Lagos, who craved anonymity, said there is no cash and that the Central Bank of Nigeria (CBN) has yet to supply banks.
“We’re currently out of cash. So, we are rationing N10,000 per customer across the counter and N5,000 on ATMs,” she said.
Another bank staff member at First Bank in the Opebi area of Lagos echoed the same thing, saying that their bank’s vault is virtually empty as they have yet to get cash from CBN.
“Customers are not depositing cash for us to dispense to customers. So, you can only get N10,000 per transaction irrespective of your withdrawal requests,” he said anonymously.
PoS operators hike charges by 100%
Meanwhile, Point-of-Sale (PoS) operators have seized the opportunity to hike their charges by as much as 100%, citing the cash scarcity and the recently imposed EMTL charges as reasons.
The operators disclosed that they find it challenging to access cash for transactions from banks and ATMs, as they buy primarily from market traders and filling station attendants.
Adedamola Adeleke, a PoS operator in the Iju-Ishaga area of Lagos, disclosed that the current cash scarcity has added to their challenges after fintech platforms began charging EMTL on customers’ accounts.
“Most operators are stranded because of lack of cash. The few with cash have no choice but to increase their charges as it is difficult getting cash from the banks,” he said.
Banks ignore CBN’s directive on cash availability
He disclosed that the operators have no choice but to hike charges as the cash scarcity has compounded their woes.
Recently, the CBN released phone numbers for Nigerians to report banks without cash in their ATMs, a move aimed at curbing cash scarcity.
However, two weeks after the apex bank’s action, many bank ATMs remained dry, and the banks imposed withdrawal limits.
PoS operators begin new charges
Legit.ng earlier reported that PoS operators hiked their charges from Monday, December 2, 2024, due to the implementation of the Electronic Transfer levy imposed by fintech firms
The Nigerian government ordered the new charges against the fintech firms through the Federal Inland Revenue Service (FIRS).
The policy was scheduled to begin on September 9, 2024, but it was delayed following Nigerians’ outrage.