The call by the House is coming
on the heels of the directive by Vice President Kashim Shettima to the CBN and
commercial banks in the country to swiftly resolve issues of cash scarcity and
arbitrary charges by point-of-sale (POS) operators.
The CBN last week issued a
directive mandating Deposit Money Banks (DMBs) to prioritise efficient cash
disbursement to customers both over the counter and through Automated Teller
Machines (ATMs).
The directive, which took
effect on December 1, 2024, forms part of the apex bank’s continued efforts to
enhance currency circulation and address cash shortages across the nation.
In a motion brought under
Matters of Urgent Public Importance by Hon. Uguru Emmanuel, the House
highlighted the economic and social implications of the cash scarcity, which
has left many Nigerians unable to access funds even for basic needs.
Hon. Emmanuel noted that while economic growth relies heavily on consumer spending and business investment, the persistent cash shortage has become a major impediment to these activities.
The lawmaker recalled that the
CBN, in its policy directive of December 21, 2022, set cash withdrawal limits
of N500,000 for individuals and N5 million for corporate entities.
However, he observed that
commercial banks have largely disregarded this policy, often limiting cash
withdrawals to as little as N10,000 or nothing at all.
He further raised alarm over
the apparent disconnect between commercial banks and Point of Sale (POS)
operators, who seem to have unlimited access to cash, often selling it at
exorbitant rates.
The lawmaker warned that unless
the CBN takes immediate action, the situation could worsen, especially with the
approach of the festive season, leaving businesses frustrated and citizens
plunged into deeper economic hardship.
In its resolution, the House
mandated the Committee on Banking Regulations to investigate the cash crunch in
commercial banks and report back within one week.
The House directed the CBN to
urgently address the cash scarcity if it is not responsible for the shortage.
Our correspondents report that
Nigerians are increasingly finding it difficult to get naira notes for their
daily transactions.
The situation is more severe in
rural communities, where access to banks and other financial transaction
platforms is limited.
In towns and cities, Point of
Sale (POS) operators have gone overboard by charging customers more than expected
to give them naira notes.
“I paid N500 to get N10, 000 at the Jabi Park,” said Jennifer Samuel, a civil servant.
“I need cash to pay for
transportation to Mararaba because the taxi drivers don’t accept transfer, but
it is not fair for me to pay N500 just to get N10, 000,” she said.
Abdulmumini Ibrahim, a
businessman, said he paid N800 to POS operator in order to collect N20, 000
cash.
“It is true that cashless
society is the way forward for any society that wants to grow but Nigeria is
not ripe for that.
“Government must invest in
infrastructure in order to convince people to accept the new norm. For now,
they should make more cash available,” he said.
Apex bank tightens noose on
fintechs
The Central Bank of Nigeria
(CBN) has fined two of the country’s most prominent unicorns, Moniepoint and
OPay N1 billion each in the second quarter of 2024, sources with direct
knowledge of the matter told TechCabal.
The sources also confirmed that
several other fintech companies were penalised, but that the two firms were the
hardest hit, following a routine CBN audit of the fintech sector, which
revealed compliance issues.
Daily Trust could not
independently verify the claim despite many efforts.
When contacted, OPay said no such
levy has been imposed on it.
Two sources familiar with the development told TechCabal that at least four other fintech companies were similarly penalised, though the details of these fines remain unknown.
The CBN has increasingly relied
on fines to enforce regulatory compliance.
In 2023, Nigerian banks paid a
combined N678 million in penalties. In October 2024, the CBN and the Securities
and Exchange Commission (SEC) imposed a N1.5 billion fine on ten commercial
banks, including Zenith and GTBank, for various infractions in the first half
of the year.
Until recently, Nigeria’s
rapidly growing fintech sector largely operated without CBN interference.
However, the rapid expansion of fintechs like OPay and Moniepoint, which now
serve millions of users, has invited greater scrutiny.
OPay, for instance, claims a
customer base of around 40 million, while Moniepoint, which processed N5.2
billion transactions in 2023, does not disclose specific customer numbers but
is similarly large.
According to the report by
TechCabal, beyond licensing, the CBN has also expressed concerns about the
fintechs’ compliance with Know Your Customer (KYC) processes.
In April 2024, the central bank
imposed a two-month ban on customer onboarding for several fintech companies,
including Kuda Bank and Palmpay, citing non-compliance with KYC standards. The
ban forced fintechs to overhaul their onboarding procedures and commit to improving
their compliance measures.
In a statement to TechCabal,
OPay said: “We categorically refute the claims that OPay Digital Services was
fined by the Central Bank of Nigeria to the tune of N1 billion for regulatory
infractions. These claims are entirely false.”
When Daily Trust reached out to
the North-east Regional Manager of Moniepoint, Alamin Jamil, he said: “I have
seen the story on some online platform and it appears false to me. I don’t have
all the details but I don’t think it is true.”
He promised to get back to our
reporter once he gets the true position of things.
However, a senior management
source with Moniepoint who prefers anonymity confirmed the fine but was uncertain
about the actual amount.
CBN’s Acting Director of
Corporate Communications, Hakama Sidi Ali, could not be reached for comment as
of press time.
[DailyTrust]
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