With just hours left in 2024, many Nigerians are grappling with a severe cash shortage as most Automated Teller Machines (ATMs) across Lagos remain out of service.
This has forced residents to rely heavily on Point of Sale (PoS) operators, who have capitalised on the scarcity to impose exorbitant charges for cash withdrawals.
Reports from various banks indicate that customers are being turned away due to a lack of cash, while those who manage to make withdrawals are limited to amounts between $13 and $26. Despite warnings from the Central Bank of Nigeria (CBN) to penalise banks not dispensing cash, the situation remains unresolved.
Bright Joseph, a Lagos resident, expressed his frustration:
“It’s been frustrating. I’ve gone to three different banks today, and none of them has cash to give. How are we supposed to celebrate the season like this?”
The situation has left residents at the mercy of PoS operators, who have significantly increased their fees. For instance, withdrawing $6.50 now attracts a fee of $0.65, compared to the $0.13 or $0.26 charged a few months ago. Larger withdrawals come with even higher charges, leaving customers with no alternative.
Benjamin Idowu, a civil servant in Ogba, shared his experience:
“I had to withdraw $13 yesterday, and the PoS operator charged me $1.30. It’s unfair, but what can I do? I needed the cash.”
For many Nigerians, cash remains essential for daily transactions such as transportation, food, and minor purchases. The shortage has severely disrupted these routines, with some blaming the CBN for failing to release sufficient cash to banks.
An anonymous official from a tier-2 bank revealed that the CBN has reduced cash disbursements, coupled with a decline in deposits from customers. This has made it difficult for banks to meet withdrawal demands.
While some suspect a collusion between banks and PoS operators to create artificial scarcity, operators have denied the claims. Olawale Michael, a PoS operator in Ikeja, explained:
“In the last two months, I have not withdrawn from the bank. My cash comes from market women and shop owners who prefer us to handle their deposits.”
Another operator, Mrs. Nkechi, disclosed that she sources cash from a nearby fuelling station at an additional cost, which she passes on to her customers.
“If I could withdraw from the bank, the charges would be normal. But since I have to pay extra to get cash, I have to adjust my rates,” she said.
In September, the CBN announced plans to sanction banks failing to dispense cash via ATMs. Governor Yemi Cardoso assured the public that a monitoring system would ensure compliance.
However, as of now, no bank has been penalised, and the ATMs remain empty.
