Naira scarcity: CBN to probe ‘collusion’ between banks, PoS operators

The Central Bank of Nigeria (CBN) has warned banks and point of sale (PoS) operators against “hoarding” and “colluding” to impact liquidity. 

In a statement on Thursday, CBN said its attention has been drawn to alleged cases of collusion between some banks and PoS operators to disrupt the circulation of the naira.

The financial regulator said it is investigating the cases, as they are capable of undermining the smooth running of the economy.

“The attention of the Central Bank of Nigeria (CBN) has been drawn to alleged cases of collusion between some Deposit Money Banks (DMBs) and Point-Of-Sale (PoS) operators affecting the availability of cash and disrupting the seamless circulation of the Naira,” CBN said.

“The CBN frowns at such inappropriate actions by certain individuals and is investigating the reported cases capable of undermining the smooth running of the economy.

“The CBN has, therefore, warned banks and PoS operators to desist from such activities as relevant sanctions shall be meted out to those found wanting.”

CBN advised members of the public to use alternative payment channels and report any cases of unauthorised activities, such as capping and hoarding by banks or PoS agents, to the CBN branches in their locations.

There has been scarcity of naira notes in recent times, even though the federal government had secured a ruling from the supreme court extending the deadline for the use of old bank notes indefinitely.

The CBN had blamed hoarding for the cash crunch.