Reps Demand Probe Into Naira Scarcity, Urge CBN To Act

The House of Representatives has demanded an investigation into the ongoing scarcity of naira notes in commercial banks, citing the severe hardship it is causing Nigerians.

The resolution followed a motion of urgent public importance moved by Uguru Emmanuel (APC, Ebonyi). The House urged the Central Bank of Nigeria (CBN) to immediately address the shortage and ensure commercial banks comply with policies to ease the situation.

Concerns Over Economic Impact
Uguru emphasized that consumer spending and business investment are key drivers of economic growth, warning that the cash crunch has dire consequences for individuals and the economy.

He recalled the CBN’s policy introduced on December 21, 2022, via circular BSD/DIR/PUB/LAB/015/073, which set cash withdrawal limits of N500,000 for individuals and N5 million for corporate entities. He noted that despite this policy, many commercial banks fail to dispense even N50,000 to current account holders.

Effects Of The Cash Crunch
Uguru lamented that the scarcity of cash has disrupted economic activities, with entrepreneurs spending long hours in banks only to withdraw as little as N10,000—or sometimes leaving empty-handed. He highlighted the plight of rural dwellers who lack access to electronic payment options, making it difficult to buy essentials or access healthcare.

He also raised concerns about the activities of POS operators who somehow have large sums of mint currency to sell, questioning the source of their cash.

Call For Urgent Action
Uguru warned that if the CBN does not resolve the cash shortage, especially as the festive season approaches, it could lead to widespread frustration and economic hardship.