Access, Zenith, UBA, Other Nigerian Banks Set ATM Withdrawal Limits for Customers

• The cash scarcity appears to have worsened as banks now resort to limiting withdrawals to customers
• Across many parts of the country, so many banks no longer give more than N20,000 as daily withdrawal
• Analysts said that banks could be hoarding cash to sell to PoS, thereby limiting the amount customers can get

Findings have shown that most banks no longer permit daily withdrawals from personal accounts exceeding N20,000.

Hence, Nigerians now find it challenging to withdraw cash from Automated Teller Machines (ATMs) or banks nationwide.

The scarcity of cash in banks occurred despite the CBN data indicating an increase in money in circulation, making the situation more concerning.

Legit.ng earlier reported that data from the Central Bank of Nigeria (CBN) shows a rise in currency outside the banking system for November 2023, a record high since the naira redesign policy.

Read also

Marketers give date fuel scarcity will end, filling stations sell at new pump prices

Nigerians speak on scarcity

Speaking to BusinessDay on anonymity, a bank employee said they were compelled to enforce the cash restriction policy because they were short on funds.

He said:

“Of course, there is rationing of cash; such a policy came from the CBN, and we don’t have enough cash right now.”

Another employee of a separate bank in one of the branches in Isolo, Lagos State, claimed that the bank had not stocked its ATMs in the previous two days due to a cash rationing plan.

The banker, who also spoke on the condition of anonymity, said:

“It is true, we don’t have money in the ATMs here; we have not loaded it for two days now, and I don’t know when they will load it, but you can withdraw it at the counter. People have been coming and going away.”

Read also

Naira bounces back, gains over N200 against dollar in black market, traders quote new exchange rate

Nigerians seek alternatives

Many Nigerians claimed that because bank ATMs had recently failed them, they frequently visit PoS operators to withdraw money for everyday transactions as the cash rationing takes a deeper toll.

Amaka Oke, a trader, said:

“I often use PoS beside my house, they may not be safe, but I have a woman I trust.”

A bank customer said:

“In most of the ATMs, despite being the bank customer, you can’t withdraw more than a certain amount; at my bank I was informed it was N10,000. I had to go to the counter to take N20,000.

“This policy is not helping because I needed N50,000 to pay for something; despite the urgency of it, I had to wait till the next day.

Financial analyst Ali Wasiu discussed the situation and stated that while having less cash in circulation has advantages, the CBN still needs to step in through several currency control measures.

Read also

"We don't have a choice": After skyrocketing prices, Indomie reduces costs of its noodles

He said:

“Banks could be hoarding cash to sell to PoS at the expense of the public. Cash rationing typically occurs during monetary tightening conditions to stem the number of physical currencies in circulation.

He clarified that it is a means of soaking up the already excessive cash in the market for a nation struggling with record-high inflation, like Nigeria.

Speaking on the effects of the cash crisis on the campaign for financial inclusion, Femi Egbesola, President of the Association of Small Business Owners in Nigeria, stated that it would have a detrimental effect, stressing that people's confidence in the system would be undermined by what is currently happening.

Egbesola said:

“People are trying to get their businesses structured and take their monies to the bank. With what is happening now, the confidence is eroded. People, mostly in the micro sectors, need cash for their daily transactions.”

Yahoo boys target Nigerian banks

Read also

“People have no choice”: FG finally speaks as MultiChoice explains increase in DStv, GOtv subscriptions

Legit.ng reported that Ola Olukoyede, the chairman of the Economic and Financial Crimes Commission, has detailed how banks nationwide lost over N8 billion in 2022 due to internet fraud, also called Yahoo-Yahoo.

The revelation was made by the EFCC chairman yesterday in an engaging meeting with media executives in Abuja, according to a report by Sun newspaper.

The EFCC boss explained how cybercrime has harmed businesses and hindered the nation's ability to draw in direct foreign investment.

Source: Legit.ng