The naira cash shortage has intensified in Ilorin, the capital of Kwara State, leaving residents frustrated.
Investigations reveal that while banks are actively collecting old currency notes from circulation, the supply of new naira notes remains insufficient. Bank officials have also noted a drop in cash deposits by customers, further exacerbating the scarcity.
The situation has heavily impacted Point of Sale (PoS) operators and bank customers alike. Depending on the bank, withdrawals are capped at between N20,000 and N50,000. Customers can withdraw up to N50,000 over the counter in banking halls but are limited to N20,000 at ATMs.
As a result, PoS operators have increased their charges. For instance, some charge N100 for N5,000 withdrawals, while others charge up to N150, depending on the location.
Attempts to get official comments from commercial banks and the Central Bank of Nigeria (CBN) yielded no results, as their representatives stated they were not authorized to speak on the matter.
PoS operators in Ilorin have expressed frustration over the adverse effects on their businesses. Bosede Benjamin, who runs a PoS outlet near the CBN office on Kabba Road, lamented:
“We can’t get enough cash from the banks and have to explore legitimate alternatives to keep our businesses running. The banks offer no clear explanations except to say there’s a cash shortage.”
Similarly, Isiaka Ismail, a PoS operator in the Maraba area, shared his challenges:
“We only manage to collect between N10,000 and N20,000 from the banks because they too are experiencing cash shortages. Sometimes, I buy N500,000 cash from wealthy individuals and pay an interest of N5,000. Despite this, I avoid imposing additional charges on my customers to ease their burden.”
Another operator, Taofeek Isiaka Lawal, based in the Sango-Kulende area, noted that the problem has persisted for weeks without any resolution:
“This scarcity has seriously affected businesses, especially with the festive season approaching.”
The cash crunch has left residents and business operators in a tough spot, with no immediate solution in sight.
