Residents of Ibadan are expressing concern over the ongoing shortage of cash, with banks and Point of Sales (PoS) operators pointing fingers at each other for the predicament. In interviews with the News Agency of Nigeria (NAN) on Sunday, residents noted that little has changed since the last holiday season.
Despite the festive period being over, some banks in Ibadan continue to impose restrictions on cash withdrawals from Automated Teller Machines (ATMs). The maximum withdrawal limit at certain ATMs is reported to be as low as N10,000, and many ATMs are frequently out of cash.
John Alamu, an entrepreneur, mentioned that the situation has only slightly improved since Christmas, forcing people to rely on PoS operators due to the inconvenience of finding a working ATM with sufficient funds.
Taiye Adeolu, a food vendor, disclosed that she now keeps her cash at hand and avoids saving in the bank due to the difficulty in obtaining money for her business. The limitations on ATM withdrawals make it challenging for businesses that require larger amounts of cash.
Mayowa Oluyinka, a businessman, shared his strategy of patronizing filling stations instead of struggling with ATM points, stating that ATMs no longer function as intended.
Olawale Alabi, a civil servant, expressed frustration at the need to search for ATMs only to discover limited withdrawal amounts, questioning why banks create such stress while PoS operators seemingly always have cash available.
In response to the situation, two bank officials, speaking anonymously, blamed PoS operators for the cash scarcity. They alleged that some PoS operators exploit multiple accounts and cards to withdraw funds, depleting ATMs and counters.
The officials clarified that banks, traditionally responsible for distributing cash, now prioritize their interests, leading to limited cash availability for other banks. They attributed the shortage during the festive season to people hoarding cash at home.
To address the issue, the bank officials explained the necessity of setting withdrawal limits to counter the activities of PoS operators. They also highlighted the growing partnership between traders and PoS operators, contributing to cash not entering the banking system.
Despite the challenges, the officials urged Nigerians to embrace electronic transfers, use cards more frequently, and reduce reliance on cash to mitigate the ongoing cash shortage. They also defended bank charges, emphasizing the operational expenses required to maintain banking services.
Isah Zakari, the National Secretary of the Association of PoS Users in Nigeria (APOSUN), blamed commercial banks for the cash shortage, alleging they reduce cash withdrawals for PoS agents. Zakari suggested that bankers may be selling money to PoS operators, contributing to the overall problem.
