“Bankers Sell Money”: Banks, PoS Operators Disagree as Cash Scarcity Persists in Nigeria
- The cash scarcity has continued to hit Nigerians even after the Yuletide and forced people to rely on PoS operators
- Sources in the banks said the operators take over funds meant for everybody from the ATM or through multiple account usage
- PoS operators, in turn, implied that bankers typically sell money to them, adding that the entire situation may be linked to questionable bank managers
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Residents across the country have continued to lament the scarcity of cash in banks even after the Yuletide.
The residents, who spoke to the News Agency of Nigeria (NAN) in Ibadan, said not so much had changed from what the situation was the last Yuletide as they can only withdraw a maximum of N10,000 at some ATM points while many ATMs were empty.
Source: Getty Images
The situation has forced many to seek money from PoS operators at a more expensive rate.
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Legit.ng earlier reported that PoS operators hiked charges to over 100% following persistent cash scarcity.
Findings showed that PoS operators, who are the last resort for cash-strapped Nigerians, increased their fees to N400 for every N10,000 withdrawal instead of the N200 they had previously charged.
However, a Guardian investigation found that neither the PoS operators nor the banks accept the blame for the situation.
Who is to blame?
Two bank employees claimed the PoS operators were to blame for the shortage because some had several accounts and ATM cards.
They also noted that by switching between ATMs, the operators took out all the money intended for everyone.
One of the sources said:
“It is even better that Nigerians cry out because the problem is not with the banks. Banks have to limit withdrawals to curb the activities of PoS operators who empty ATMs and withdraw via the counters.”
Another bank employee claimed there wasn't enough cash available over the holiday season since individuals were hoarding money at home, leaving the banks with little to give to customers.
“There is a limit to cash supply. Cash must not be in excess, and it must not be in short supply. CBN has a ratio of the money it must keep, but what is happening in Nigeria is peculiar.
“When the CBN releases money, many people hoard the cash, which is called cash hoarding. While some do so out of fear, others do it for political reasons.
“Nigerians have a Korean cash mentality. So, you will be surprised that some have cash stacked in their houses. CBN says we have printed our quota, but where is the cash? So, it is not the CBN’s fault, and neither is the banks’ fault too.”
The source claimed that PoS operators are now opening multiple accounts and carrying various cards despite restricting withdrawals.
The insider said market dealers and PoS operators already share cash through collaboration. The market dealers take their money to the PoS operators rather than to the bank.
He added:
“This is how cash is not even entering the banking system. That is why we don’t have issues like in 2023 because the market now self-regulates itself."
PoS operators react
But addressing the allegation, the National Secretary of the Association of PoS Users in Nigeria (APOSUN), Mr Isah Zakari, said there were lots of factors causing cash shortage.
He, however, put most of the blame on commercial banks.
He said:
“The truth is, many PoS outlets are owned by bankers, and what they do is remove the money that is supposed to circulate within the banks for customers to cash, turning it to their PoS outlets. This is with the thinking that the country will stop using the old naira notes."
Zakari alleged that bankers typically sell money to PoS operators. He further stated that the situation may be linked to questionable bank managers.
He claimed Niger Republic is also experiencing a cash shortage, leading them to use naira as a substitute currency. This, he said, added to the scarcity of naira in Nigeria.
He said:
“This may go on until when the country (Niger) fully secures its autonomy from France.”
FG speaks on new solution to solve cash scarcity in "Nigeria
Legit.ng earlier reported that the federal government clarified that the sarcity witnessed in the country was not deliberate to cause Nigerians suffering.
Minister of information and national orientation, Mohammed Idris, stated this at a press briefing on President Bola Tinubu's administration's achievements in Abuja on Thursday, December 21, 2024.
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Source: Legit.ng
