Economy

Nigerian Banks Alleviate Cash Crisis with Increased Payouts to Customers

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Nigerian Banks Alleviate Cash Crisis with Increased Payouts to Customers
Naira

Banks have recently increased cash payouts to their customers, resulting in a significant reduction in the long queues and large crowds that had previously been seen at cash dispensary points over the last two and a half months. This was made possible by the consistent cash evacuation from the Central Bank of Nigeria (CBN) to Deposit Money Banks since last Friday.

A visit to several banks in major cities showed that most of their branches now had enough cash to satisfy customers’ withdrawal demands. Vanguard visits to four banks on Broad Street in Lagos Island showed that all the banks allowed customers to withdraw as much as N200,000. This was a departure from last week’s situation when most customers could not withdraw more than N5,000.

FirstBank branches paid N10,000 from the Automated Teller Machines (ATMs) to both customers and non-customers. Meanwhile, United Bank of Africa (UBA) paid N100,000 over the counter and N20,000 through ATMs to customers and N10,000 to non-customers. However, a visit to Guaranty Trust Bank (GTB) revealed that the bank only paid N15,000 to customers over the counter with a withdrawal slip.

In Abuja, it was discovered that all bank branches had enough cash to meet customers’ withdrawal needs, with ATMs dispensing mainly old N1000 and N500 notes. It was also discovered that most people who went to banks in the capital city were there to resolve unsuccessful transactions that had characterized the industry during the peak of the cash crisis.

Investigations showed that Point of Sale (PoS) operators were fully back in business, with enough cash to meet their customers’ needs. Additionally, their transaction charges had reduced, as customers were no longer desperate to receive cash from them.

As normalcy returned, transporters and technicians in the capital city have begun rejecting transfers as a means of payment, particularly for small amounts.

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