Shettima tells banks to resolve cash scarcity, arbitrary charges

Vice-President Kashim Shettima

Shettima tells banks to resolve cash scarcity, arbitrary charges

Vice President Kashim Shettima has urged the Central Bank of Nigeria (CBN) and commercial banks to urgently address issues of cash scarcity and arbitrary charges by Point of Sale (POS) operators. He made this call at Friday’s 2024 Bankers Committee annual retreat in Abuja.

Represented by the Special Adviser to the President on Economic Matters, Dr. Tope Fasua, Shettima emphasized the importance of tackling these challenges to enhance financial and economic inclusion.

“Nigerians complain bitterly about their inability to access minimal cash when needed. There also seems to be exploitation through high and arbitrary charges by street-level POS operators. We are confident that these issues can be resolved with concerted efforts,” Shettima said.

He also encouraged the banking sector to introduce more initiatives to finance Micro, Small, and Medium Enterprises (MSMEs) while supporting federal and state government efforts to reduce consumer credit costs.

Shettima noted that the National Bureau of Statistics is working to rebase the economy, GDP, and Consumer Price Index, a task last undertaken over a decade ago despite the World Bank’s recommendations for more frequent reviews.

CBN Governor Highlights Financial Challenges

In his address, CBN Governor Olayemi Cardoso acknowledged the financial crisis the apex bank inherited and outlined key economic challenges.

“Over the past eight to nine years, the economy grew on average at 1.8% annually, while money supply expanded by about 13%. Outstanding Ways and Means at the end of 2022 was approximately 11% of GDP—a global record,” Cardoso stated.

He stressed the need for robust solutions to address the economic challenges, urging the committee to prioritize innovation and inclusivity while reinforcing trust with the Nigerian public.

“We must reflect on creating an ecosystem that supports innovation and fosters an inclusive economy,” Cardoso added.

The retreat served as a platform for stakeholders to discuss strategies for overcoming Nigeria’s financial challenges and promoting sustainable economic growth.