Cash Scarcity Hits Calabar As Banks Limit Withdrawals

A resurgence of cash scarcity has hit Calabar, the capital of Cross River state, reminiscent of an episode around ten months ago. Several banks in the city have reportedly imposed a withdrawal limit of N5000 over the counter. It was revealed that most Automated Teller Machines (ATMs) are not dispensing cash, and those that do only provide N5,000 or N10,000 denominations. Additionally, only two banks in Calabar are reportedly honoring withdrawals of up to N60,000, exclusively for their customers. Point of Sale (POS) agents are now charging N200 to N300 for N5000 withdrawals and N500 to N600 for N10,000 withdrawals. Agents expressed frustration, citing expenses of up to N3000 for transportation in the quest to find banks and ATMs with available funds. These increased charges, as explained by the agents, aim to offset the costs incurred while navigating the challenges of sourcing cash from various banks and ATMs. In the wake of renewed cash scarcity in Calabar, a resident, Mrs. Eme Okon, shared her dismay with The Guardian during a visit to one of the banks in the city. Mrs. Okon recounted her experience, stating, "Can you imagine, I filled a teller to withdraw N30,000, and the lady at the counter informed me, 'Madam, I don’t have this kind of money to give you; I have only N5000, which is our limit.' When I asked her why, she couldn’t provide an answer. What happened early this year is repeating itself again. Emefiele is imprisoned as we speak because he became the scapegoat; who are they going to arrest and imprison this time around?" she wondered. This recurrence of cash scarcity echoes a situation that unfolded ten months ago when the Central Bank of Nigeria (CBN) redesigned the naira, triggering panic withdrawals across the country. The previous episode resulted in untold hardship for Nigerians who were denied access to their funds.