The House of Representatives has resolved to probe the Central Bank of Nigeria (CBN) over the persistent scarcity of naira notes nationwide. This decision came after a motion presented by Hon. Uguru Emmanuel highlighted the adverse effects of the cash shortage on the economy and daily lives of Nigerians.
Hon. Uguru expressed alarm at the widespread cash crunch, noting its detrimental impact on key economic indicators such as GDP, consumption, investment, and money supply. He emphasized that consumer spending and business investments—essential drivers of economic growth—are being significantly constrained by the limited availability of cash.
The lawmaker drew attention to a CBN policy issued on December 21, 2022, which set cash withdrawal limits of ₦500,000 for individuals and ₦5 million for corporate entities. However, Hon. Uguru criticized commercial banks for failing to comply with the policy, citing instances where customers struggle to withdraw even ₦50,000.
“The House is aware that cash shortages in commercial banks have dire consequences for individuals and the economy. Despite existing withdrawal limits, many banks are unable to meet customer demands, causing long queues, delays, and frustration,” Uguru said.
The motion also highlighted the exacerbation of hardships in rural areas, where alternatives like Point of Sale (POS) systems are unavailable. In urban areas, POS operators reportedly sell cash at inflated rates, raising questions about their access to large sums of naira.
“The House is alarmed that while commercial banks claim to have no cash, POS operators can dispense up to ₦1 million in mint notes. This raises serious concerns about where they are sourcing the money,” Uguru added.
With the festive season approaching, the House expressed fears that continued cash shortages could lead to widespread frustration and worsen economic hardships for individuals and businesses.
In response, the House mandated its Committee on Banking Regulations to investigate the situation and report back within a week. The CBN was also directed to take immediate steps to address the cash crunch in commercial banks or provide an explanation for the ongoing crisis.
The investigation aims to uncover the reasons behind the cash shortage and hold accountable those responsible for non-compliance with CBN policies. The House has reiterated its commitment to ensuring Nigerians have access to cash to ease their economic burdens.
The outcome of the probe is expected to provide clarity and solutions to the challenges affecting the nation’s financial system.
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