By Emmanuel Ogbodo
As the holiday season looms, Nigerians are grappling with a severe cash shortage, disrupting businesses and daily transactions nationwide. Despite the Central Bank of Nigeria’s (CBN) claim that N3.87 trillion is outside the banking system, access to cash remains a struggle, leaving many in long ATM queues or turning to costly alternatives.
Recent data shows 93.34% of Nigeria’s currency is held outside formal banking channels, with rural markets particularly hard-hit.
Vendors remain wary of digital payments due to past fraud experiences, further deepening the crisis.
In Nyanya, near Abuja, residents like entrepreneur John Otafu endure daily frustration.
“You search endlessly for a working ATM, only to be limited to N10,000 withdrawals,” he lamented.
The situation has sparked tension between banks and Point-of-Sale (POS) operators. POS agents accuse banks of restricting withdrawals, while banks blame operators for hoarding cash and exploiting the scarcity.
In Mararaba, innovative solutions have emerged, with POS agents partnering with traders to secure cash, albeit at steep fees.
Experts warn that Nigeria’s cash dependency is unsustainable.
“The nation must embrace digital banking or face recurring crises,” a banking official cautioned.
For now, as the festive season nears, the cash crunch leaves Nigerians caught between tradition and the urgent need for modernization.
