A growing wave of cash scarcity has further deepened the economic hardship faced by Nigerians, as banks across the country intensify cash rationing due to a limited supply of physical currency and reduced deposits.
The situation has left citizens scrambling for cash, with long queues at Automated Teller Machines (ATMs) and inside banking halls becoming a daily ordeal. Many residents are unable to withdraw enough funds for essential transactions, creating a ripple effect on businesses and households that rely heavily on cash-based operations. Market vendors, transport operators, and small business owners are among the hardest hit, with some reporting a significant drop in revenue due to customers’ inability to pay in cash.
Banks have attributed the crisis to insufficient cash supply from the Central Bank of Nigeria (CBN), coupled with a decrease in cash deposits. While digital payment options exist, many Nigerians in rural areas or informal sectors have limited access to these alternatives, compounding the challenges.
The ripple effects of the cash crunch have been felt in other sectors. Transportation costs have skyrocketed in some areas, as drivers and commuters grapple with limited cash availability. Additionally, the prices of goods and services have surged, with sellers citing the difficulty in accessing funds as a key reason for price hikes.
In response to public outcry, the House of Representatives has urged the Central Bank of Nigeria to urgently address the cash shortage. Lawmakers highlighted the strain the cash crunch is placing on the already vulnerable population, emphasizing the need for immediate intervention to stabilize the situation.
Despite assurances from some banks of an imminent improvement in cash availability, many Nigerians remain skeptical. The prolonged shortage has eroded public trust in the financial system, as citizens grapple with the dual challenges of economic hardship and restricted access to their own funds.
As the nation faces this crisis, calls for systemic reform and better fiscal management have grown louder, with experts warning that the prolonged cash crunch could have lasting implications for economic growth and public confidence.
