The Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) has blamed the Central Bank of Nigeria (CBN) for the worsening cash shortage, attributing it to the apex bank's failure to meet the cash demands of commercial banks.
ASSBIFI President, Olusoji Oluwole, described the challenges as persistent since the naira redesign policy, with the situation worsening ahead of the festive season. He noted that banks rely on the CBN and retailers for cash but face difficulties as retailers hoard cash for profit, disrupting the supply chain.
“Banks are not in a position to force retailers to bring cash back into the system. The CBN needs clear statistics on cash circulation to address these issues effectively,” Oluwole explained.
Highlighting operational needs, he stated that banks require a minimum of N20 million daily, with ATMs needing N8 million each and over-the-counter transactions requiring N4 million. He also emphasized the need for stronger enforcement against illegal currency trading by security agencies.
Oluwole called for a shift towards a cashless economy, citing its efficiency and cost benefits, while urging the CBN to act decisively to resolve the crisis.
In a related statement, Emmanuel Onwubiko, National Coordinator of the Human Rights Writers Association of Nigeria (HURIWA), criticized the CBN’s mishandling of monetary policy under Governor Olayemi Cardoso. Onwubiko highlighted the hardship faced by millions, especially in rural areas, due to limited cash access, pushing small businesses and daily wage earners into deeper poverty.
He called on President Bola Tinubu to intervene to stabilize the banking system and avert further economic hardship.
The ongoing cash crisis has reignited debates on monetary policy efficiency, currency management, and the push for a cashless economy in Nigeria.
