CBN speaks as PoS operators consider hike in charges, resort to naira buying as cash scarcity bites

The Central Bank of Nigeria has said the current cash scarcity is caused by commercial banks making large withdrawals from its branches nationwide.

The development comes as Point of Sale (PoS) operators returned to buying cash from traders and petrol station attendants as banks ran out of money.

Also, commercial banks have imposed withdrawal limits on various ATM points across Nigeria.

PoS operators said that they have returned to cash-buying following the cash scarcity that is threatening to return like the pre-naira redesign era.

The development has led to operators increasing their transaction charges by 100% from N100 to N200 for cash of N5,000.

A PoS operator in the Iju-Ishaga area of Lagos, Mike Oyewole, told Legit.ng that all the operators in the area have increased their charges as they find it challenging to access cash from normal banking channels.

“I queued at the ATMs at Fagba for over an hour before I could get some cash. Of all the eight ATM points in the area, only four were dispensing.

“We are now patronizing petrol attendants and traders as we did in January and February this year,” Oyewole said.