With just five days to Christmas, the Nigeria Labour Congress (NLC) has voiced concerns over the prolonged cash scarcity in the country. The NLC, through its National President, Joe Ajaero, issued a statement warning the Federal Government and the Central Bank of Nigeria (CBN) about the imminent threat of a mass public protest if urgent steps are not taken to address the scarcity of the national currency, the naira.
Key Points:
- Cash Scarcity Concerns: Bank customers in Nigeria have been facing difficulties accessing cash for daily needs despite assurances from the Central Bank of Nigeria. Many banks are rationing cash over-the-counter, and numerous ATMs are not dispensing money, leading to frustration among citizens.
- NLC’s Warning: The NLC has conveyed its displeasure over the situation, emphasizing the serious implications for citizens. The labor union warned of a potential mass public protest if prompt actions are not taken to resolve the ongoing naira shortage.
- Previous Cash Crunch: The NLC recalled the challenges faced by Nigerians during a previous cash crunch earlier in the year, attributing it to the ill-conceived currency redesign policy. The union expressed concern about a recurrence of such difficulties and questioned the government and CBN on the reasons behind the current cash scarcity.
- CBN’s Reasons and ALTON’s Response: The CBN has cited reasons such as an increase in fake notes and naira hoarding for the cash scarcity. However, the NLC leader questioned the validity of these reasons, and the Association of Licensed Telecoms Operators of Nigeria (ALTON) appealed to telephone users to promptly submit their National Identification Numbers (NINs) to avoid full suspension of services.
- Impact on Citizens: The NLC highlighted the negative impact on citizens who are spending more time in banks, facing difficulties accessing their hard-earned income. The use of Point of Sale (PoS) operators has resulted in additional charges, affecting the income of poor Nigerians.
- Government’s Role: The NLC called on the government to take immediate and decisive action to alleviate the cash crunch, injecting liquidity into the economy. The union stressed the need for transparent communication from the CBN regarding steps being taken to address the situation.
- Bank Challenges and Denial by CBN: Findings indicate that banks are struggling to meet the cash needs of customers, and some ATMs are not dispensing money. The CBN, however, denies causing the scarcity and attributes it to hoarding during the naira redesign project.
- Alternative Measures and Public Reaction: Some banks have reportedly sourced cash from other branches to meet customer demands. Meanwhile, customers are expressing frustration over reduced withdrawal limits, and there are concerns about the scarcity’s impact on the already challenging economic situation.
Conclusion: As the Christmas season approaches, the NLC’s warning of a potential mass protest underscores the urgency for the government and the CBN to address the cash scarcity. Transparent communication, collaborative efforts with financial institutions, and decisive actions are needed to mitigate the impact on citizens and ensure a smoother festive season for Nigerians.
