The House of Representatives has directed the Central Bank of Nigeria to immediately address the issue of cash crunch in the commercial banks in Nigeria.
The directive followed the adoption of motion on matters of urgent public importance on the need to address the hardship caused by cash crunch in commercial bank in Nigeria, moved by Mr. Uguru Emmanuel at plenary.
Leading the debate on the motion, Mr. Uguru said that the House notes that economic indicators include measures of macroeconomic performance, that is; gross domestic product, consumption, investment, money supply, international trade among others.
“Cognisant that one of the major factors that stimulate economic growth is Consumer spending and business investment.
“Also cognisant that cash supply shortage in Commercial Banks have dire consequences on individuals and the nation’s economy.
“Aware that on 21% December, 2022, the Central Bank of Nigeria by a policy contained in a Circular number BSD/DIR/PUB/LAB/015/073 reviewed the cash withdrawal limits across ail channels to N500,000 and N5,000,000 for individuals and Corporate entities respectively, and which is not known to have been repealed.
“Concerned that the Commercial Banks in the Country have jettisoned this policy as they can hardly give N50,000.00 to even current account holders.
“Disturbed that the cash crunch in Commercial Banks in the Country has become a dog in the wheel of economic activities, as entrepreneurs are subjected to long queue and sometimes spent a whole day or two in the Bank with loss of man hour only to get ten thousand Naira (N10,000) and in most cases go back home with nothing, subjecting these class of persons who have no access to point of sale (POS) that is mostly not applicable in some articles of trade especially in the rural areas to hopelessness.
These therefore causes untold hardship to this uninformed populace most of whom are rural dwellers we are representing, hence this cry to protect their interest, as lives could even be lost for lack of funds (cash) to take their sick ones to hospital and sometimes nothing to buy food with.
“Alarmed that while the Commercial Banks have no money to dispense, the POS operators have in their disposals up to one million Naira in mint to sell to their cronies and the public, and the pertinent question is; where do they get the money from?
“Worried that if the Central Bank of Nigeria continue to starve Commercial Banks of cash, especially as we approach the yuletide season, many people and even businesses will be frustrated and people plunged into untold hardship,” the motion said.
The House thereafter mandated the House Committee on Banking Regulations to investigate the matter and report to the House in one week.
Lateefah Ibrahim
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