House of Representatives Urges CBN to Tackle Worsening Naira Shortage

The House of Representatives has urged the Central Bank of Nigeria (CBN) to find a permanent solution to the persistent cash shortage affecting commercial banks across the country. 

This motion was brought before the House by Uguru Emmanuel, a lawmaker who highlighted the severe economic and social challenges caused by the ongoing crisis. 

With the yuletide season in full swing, many Nigerians have found themselves stranded, unable to access funds needed for essential transactions.

Emmanuel, who represents Abakaliki/Izzi Constituency, emphasized that consumer spending and business investments—key drivers of economic growth—have been significantly disrupted by the cash crunch. He expressed concerns over the difficulty many Nigerians face in accessing funds during this period.

The lawmaker referenced the CBN’s policy directive of December 21, 2022, which set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities. However, Emmanuel noted that commercial banks have largely ignored this directive, with some restricting cash withdrawals to as little as N10,000 or even nothing at all.

He criticized the situation, stating, "Entrepreneurs and individuals are subjected to long queues, sometimes spending days at banks without success. This situation has particularly affected rural dwellers who rely on cash for transactions and lack access to digital payment systems."

In response, the House has mandated the Committee on Banking Regulations to investigate the cash shortage in commercial banks and submit a report within one week. The House has also called on the CBN to take immediate action to address the cash scarcity, should the central bank be found not to be responsible for the crisis.

Further addressing the issue, Emmanuel raised concerns about the practices of Point of Sale (POS) operators, who continue to charge exorbitant fees despite having seemingly unlimited access to cash. "Where do POS operators get their cash from while banks remain dry?" he questioned.