Reps Demand Probe into Naira Scarcity Amid Economic Hardship

The House of Representatives has called for an investigation into the ongoing shortage of naira notes at commercial banks, urging immediate action to alleviate the economic strain Nigerians are facing. The call comes after an urgent motion by Uguru Emmanuel (APC, Ebonyi) was adopted, highlighting the severe consequences this scarcity is having on consumers and businesses alike. The lawmakers have directed the Central Bank of Nigeria (CBN) to address the situation and hold commercial banks accountable for the shortages if they are not responsible.

Uguru stressed that a healthy economy is driven by consumer spending and business investment, both of which are hampered by the current cash shortages. He noted that, since the CBN introduced a cash withdrawal limit policy in December 2022, the banks have failed to comply, with many unable to provide even basic amounts like N50,000 to their customers. This non-compliance is exacerbating the hardships faced by ordinary Nigerians, particularly those in rural areas, who lack access to alternative payment methods like Point of Sale (POS) systems.

The lawmaker also raised concerns about the prolonged wait times and frustrations entrepreneurs face when trying to access cash, with some forced to spend entire days at the bank for minimal withdrawals. This inefficiency is not only wasting valuable time but also negatively impacting business productivity, leading to significant financial losses. Uguru warned that without swift intervention, this ongoing cash crunch could severely damage the economy.

Further complicating the situation, the lawmaker pointed out the disparity between commercial banks and POS operators. While banks are reportedly short on cash, many POS agents are able to access large sums, sometimes up to one million naira, and are suspected of selling it to the public at a premium. Uguru questioned the source of these funds, calling on the CBN to investigate this issue to ensure fairness and transparency in the currency distribution system.

With the festive season approaching, Uguru expressed fears that the scarcity could escalate, causing even more hardship for individuals and businesses. He emphasized that, if left unaddressed, the current situation could lead to greater economic and social instability, further exacerbating the suffering of Nigerians who are already grappling with inflation and limited access to cash. The House has therefore called for an urgent review and solution to ensure a steady flow of naira notes across the country.