The Nigerian banking system, once celebrated as the backbone of the nation's economy, is facing a glaring paradox. Customers walk into bank branches daily to access their funds, only to be told that cash is scarce. The situation, which began following the Naira redesign exercise under former President Muhammadu Buhari, has become a troubling norm. Bank tellers now ration cash withdrawals, often imposing arbitrary limits like N20,000 per person, without detailed explanations. This raises an unsettling question: is there a hidden liquidity crisis in the Nigerian banking system?
The central function of a bank is to provide customers with seamless access to their deposits, yet this appears to be failing. The scarcity of cash at bank branches stands in sharp contrast to the availability of cash through Point of Sale (POS) operators, who always seem to have more than enough to meet demand. This discrepancy is baffling and has fueled widespread speculation about the health of the banking system.
The Central Bank of Nigeria (CBN) has reiterated commitment to boost liquidity for the Foreign Exchange Market, reports ITREALMS.
Director, Corporate Communications, Dr. Isa AbdulMumin gave this assurances on Thursday in a press statement available to ITREALMS, saying they will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market.
