Customers groan as banks slash ATM withdrawal limits over cash shortage

Further inquiries disclosed that, in anticipation of Christmas and New Year, commercial banks have curtailed customers' withdrawal limits.

Numerous customers have lamented their inability to withdraw the required amounts in person, citing insufficient cash availability in many banks across the state.

Cash shortage despite Supreme Court ruling

The predicament intensified during the weekend when most visited ATMs proved either non-functional or limited amount of cash a customer could withdraw, as the banks had failed to replenish them with cash.

It remains unclear why there is a shortage of cash, despite the Supreme Court's recent ruling that both the old and newly redesigned naira notes will continue to serve as legal tender in the country.

This decision, however, raises surprise as there shouldn't be a cash shortage, given the expectation that the system should witness an increase in cash circulation.

Customers reported that bank officials advised them to explore alternative channels to complete their pending transactions.

Banks set cash withdrawal limits

Numerous banks were noted to be functioning with insufficient cash reserves to fulfil the diverse requirements of their customers.

With the shortage in cash availability, the banks are rationing cash to customers, leading to widespread dissatisfaction. Some customers who were fortunate to find ATMs dispensing cash faced a limit to the amount of cash they cash withdraw.

As a result of the shortage, extensive queues of customers were observed at the ATM locations. At the Access Bank ATM stand in Okota, customers were informed by the machine of the exhaustion of their withdrawal limit of only N40,000.

The ATM could only dispense N10,000 at a time and after 4 transactions, a customer would be notified that they have reached their withdrawal limit.

The same thing was also observed at the Zenith Bank branch in Obafemi Awolowo Road, Ikeja, where customers were allowed to make withdrawals of up to N40,000, and non-customers could only withdraw N20,000 cash.

Tunji Adewale, a bank customer who spoke with Legit.ng said he was shocked when he was informed by the machine that he had exhausted his withdrawal limit after only withdrawing N40,000.

He said: "It was quite surprising to me when the machine informed me that I could not make further withdrawal. I need cash to make some purchases today, but sadly, I can't get the amount of cash that I need."

The scarcity is not limited to ATMs; even over-the-counter transactions have become a challenge.

Customers find themselves turned away and referred to the ATMs for withdrawals or restricted in the amount they can withdraw. One customer, Susan Nsikan, told Legit.ng: "I managed to get into the banking all, but I was referred to return to the ATM point for withdrawals. But there is already a long queue there."

PoS operators unable to access cash too

According to the information gathered, various operators in the Point-of-Sale sector were adversely affected as they encountered challenges in obtaining adequate cash from both banks and ATMs for the smooth operation of their businesses.

Julie Ukpa, a PoS operator in the Oshodi area, complained that in the last few days, she had not been able to get as much cash as she usually does for her business.

She said: "The amount of cash that I had with me was exhausted in a few hours from customers who had come for withdrawals. Now, I need more cash, but I can't seem to find an ATM machine dispensing at the moment. And if you find any, you are sure to meet heavy queues.

Banks response on cash shortage

Speaking anonymously with Legit.ng, a Fidelity Bank official in the Yaba area, confirmed the current scarcity of cash. He attributed it to a shortfall in the supply of cash from the Central Bank of Nigeria (CBN), given that cash demand usually heightens during the Yuletide season.

He said: "Given that we are approaching the year-end, the demand is substantial, and we are working to strike a balance. "Unfortunately, the CBN has not been supplying us with sufficient cash, particularly in the past few weeks amid the heightened demand.

"We understand the frustration of our customers, and we are working tirelessly to resolve the issue." He, however, said that the approach that the banks are taking is urging customers to explore alternative channels while providing them with the limited cash resources available on-site.