Reps Asks CBN To Investigate Ongoing Scarcity Of Naira Notes

The House of Representatives has asked the Central Bank of Nigeria (CBN) to investigate the shortage of Naira notes currently being experienced in commercial banks, which is causing significant hardship for Nigerians.

The lawmakers made the demand on Tuesday in response to a motion of urgent public importance presented by a member of the House from Ebonyi State, Uguru Emmanuel (APC).

The lawmakers asked the apex bank to immediately address the naira shortage and take action against commercial banks if they are not responsible for the crisis.

Uguru while presenting the motion stressed that consumer spending and business investment are key drivers of economic growth, emphasizing that the shortage of cash in commercial banks is severely impacting individuals and the national economy.

He recalled that on December 21, 2022, the CBN issued a policy (circular number BSD/DIR/PUB/LAB/015/073) that set cash withdrawal limits of N500,000 for individuals and N5,000,000 for corporate entities.

This policy, he noted, has not been repealed.

He expressed concern that commercial banks are disregarding the policy, with some unable to provide even N50,000 to current account holders.

Uguru described the cash crunch as a major obstacle to economic activity, with entrepreneurs facing long queues at banks and sometimes spending entire days just to withdraw small amounts, often leaving empty-handed.

This comes as many Nigerians, particularly in rural areas without access to Point of Sale (POS) systems, are left in desperate situations, unable to purchase necessities or pay for medical care.

Uguru therefore warned that such conditions could even lead to loss of life, as people are unable to access funds for urgent needs.

He further criticised the disparity between the cash shortages in commercial banks and the large sums of money available to POS operators, who are reportedly selling up to one million naira to the public and their networks.

The lawmaker questioned where the POS operators were obtaining such large amounts of cash.

He warned that if the CBN continues to withhold cash from commercial banks, particularly as the holiday season approaches, it will lead to further frustration for individuals and businesses, exacerbating the ongoing hardship.