The House of Representatives has initiated plans to investigate the Central Bank of Nigeria (CBN) regarding the ongoing scarcity of naira notes, which has severely impacted the economy. This decision was prompted by a motion from Hon. Uguru Emmanuel, highlighting the detrimental effects on key economic indicators such as GDP, consumption, and investment due to cash shortages in commercial banks.
Hon. Emmanuel emphasized that consumer spending and business investment are critical for economic growth, yet many individuals struggle to withdraw even minimal amounts, leading to long queues and frustration at banks. He noted that the situation is particularly dire in rural areas where access to alternative payment methods is limited. The CBN's policy from December 2022, which set cash withdrawal limits, has reportedly not been adhered to by banks, exacerbating the crisis.
The House expressed alarm over reports that POS operators are selling cash at inflated prices while banks claim to have no money to dispense. This raises questions about potential collusion between banks and POS operators. With the holiday season approaching, lawmakers fear that continued cash shortages could lead to widespread hardship for citizens and businesses alike.
To address these issues, the House has mandated its Committee on Banking Regulations to conduct an investigation and report back within a week. The CBN has been directed to clarify its role in the cash crunch and take immediate action to alleviate the situation.
