Yuletide: NLC Voices Out as Cash Scarcity Causes Nigerians to Spend More Time in Banks - The Top Society

Yuletide: NLC Voices Out as Cash Scarcity Causes Nigerians to Spend More Time in Banks

As the Christmas festivities approach, Nigerians are grappling with a severe cash scarcity, prompting the Nigeria Labour Congress (NLC) to express deep concerns and issue a warning to the Federal Government and the Central Bank of Nigeria (CBN). Bank customers across the country have reported difficulties in accessing cash for their daily needs, despite assurances from the CBN.
In a statement released on Tuesday, the NLC, through its National President, Joe Ajaero, highlighted the serious implications of the lingering cash shortage just five days before Christmas. The NLC called for urgent steps to address the situation, emphasizing that failure to do so could lead to a mass public protest.
Bank customers have faced challenges accessing cash over-the-counter, with many ATMs not dispensing cash. The rationing of cash by banks has intensified frustrations among citizens, leading to increased difficulties in meeting daily needs. The NLC warned that the ongoing situation was not only undermining public confidence in banks but also discouraging active participation in banking.
Ajaero stated, “Nigerians are spending more time in the banks, trying to source for cash not for monies that are not in their accounts, but for their own money. This is undermining the confidence of the public in the banks, and may discourage the citizenry from participating actively in banking.”
The NLC leader criticized the government’s explanations for the cash scarcity, including an increase in fake notes and the hoarding of the naira. He questioned the government’s anti-corruption agenda, expressing concern that the ordinary citizens were bearing the brunt of apparent incompetence in prosecuting the anti-corruption war.
The statement revealed that Point of Sale (PoS) operators were charging substantial fees, such as N400, to access N10,000, resulting in a reduction in the value of income for poor Nigerians. The NLC urged the government to take immediate and decisive action to alleviate the money crunch, emphasizing the importance of transparent communication regarding steps being taken to address the issue.
Despite reassurances from the CBN that there is sufficient cash in circulation, reports indicate that many banks in Lagos and other South-West states have yet to receive adequate cash disbursements. Some banks have resorted to sourcing cash from their branches in other regions to meet customer demands.
As the festive season approaches, the NLC’s warning serves as a reminder of the potential social and economic impact if the cash scarcity issue is not promptly and effectively addressed.
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