Naira scarcity: Banks close early, ATMs empty as withdrawal limit falls below CBN directive

The cash scarcity in parts of the country may worsen as some banks in Lagos have stopped dispensing both the old and new naira notes from their automated teller machines (ATMs), while others have reduced the over-the-counter withdrawal limit to N5,000.

On December 8, 2022, Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), said banks had received the new naira notes, assuring Nigerians that “it would go round”.

The CBN also ordered commercial banks to load the redesigned notes in their ATMs and pledged to sanction financial institutions that fail to comply with the directive.

In a similar move to reduce crowds at ATM terminals, the CBN also directed banks to start paying the new naira notes to customers over the counter, but with a limit of N20,000.

Following efforts to monitor compliance with the apex bank’s directive on Tuesday, TheCable observed that frustration among customers is burgeoning as access to their money has become a back-breaking venture.

When TheCable reporters visited some banks in the afternoon, it was discovered that they had stopped operating and closed for the day.

A security personnel of Zenith Bank in Fagba said the management received information of a planned attack on the branch, hence the decision to halt operations until safety was guaranteed.

“We received a distress call that an attack was going to be carried out on our branch at Fagba, that is why we closed,” the security officer said. 

“Also our branch in Ọgba was attacked yesterday.”

The same situation was obtainable in one of the Zenith Bank branches visited in Uyo, the capital of Akwa Ibom state.

A notice was posted at the entrance of the bank indicating that the “branch is not opened to customers for transactions due to server issues”.

The Access Bank ATMs in Fagba, Lagos were also not dispensing cash while customers were asked to enter the bank for withdrawal over the counter, after receiving a number tag.

The situation was slightly different at First Bank, Ogba, where one — out of five ATMs — was working.

Security officers were seen preventing customers from entering the bank premises as there was already a huge crowd waiting to use the only functioning machine.

UBA CLOSED BY 3PM ON TUESDAY

Also, as of 3pm on Tuesday, banks in Alausa, Ikeja, had closed and restricted all access. Most of the ATMs were also not functional.

CUSTOMERS WITHDRAW LESS THAN CBN’S N20,000 LIMIT

A few banks granted access to customers, allowing a withdrawal limit of N5,000 — an amount that is N15,000 less the stipulated over-the-counter maximum.

For instance, at Union Bank, 3rd Avenue, Festac Town, customers were permitted to withdraw N5,000.

According to an Ecobank official, customers could collect as much as N20,000 from the ATMs, while non-customers could only collect N3,000.

The official added that there were no withdrawals over the counter, except deposits.