metro

Worry over cash scarcity in banks as farmers mop up naira

Published

4 months ago

November 15, 2024

Worry over cash scarcity in banks as farmers mop up naira

There is rising complaints by bank customers and Point of Sale (POS) operators in some states across the country over alleged cash squeeze just as citizens try to meet their increasing demands for notes especially as yuletide shopping begins.

The states where these concerns are being raised include Bauchi, Borno, Kaduna, Kano, Kebbi, Taraba, as well as some satellite towns of the Federal Capital Territory (FCT).

The scarcity, which has lasted over a week in the reported states, is coming amidst data from the Central Bank of Nigeria (CBN), revealing that the total currency in circulation has reached N4.14 trillion, with N3.87 trillion of this amount currently outside the banking system.

The recent CBN data indicates that 93.34 per cent of the nation’s currency is in the hands of individuals and businesses, while only 6.66 per cent remains within the banking sector.

The gap between currency outside banks and the total currency in circulation suggests that Nigerians, especially those living in the northern part of the country, still heavily rely on cash for daily transactions, despite the rise of digital banking services.

Also, the CBN data revealed that currency in circulation in Nigeria has added N1.48 trillion or 55.8 per cent Year-on-Year (YoY) to N4.14 trillion as of August 2024, from N2.66 trillion in August 2023.

Cash squeeze pronounced in the North

Daily Trust findings revealed that the northern states are mostly affected by the current scarcity largely due to the onset of harvest and the fewer numbers of financial institutions in the rural areas of the North.

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Findings by our reporters in Borno State indicate that some businessmen buying up grains on a large scale were said to be mopping up cash.

A POS operator, Hamza Abdullahi, said operators no longer get the required cash in banks, therefore, depend on traders and petrol stations.

Hamza attributed the scarcity to the harvest and yuletide period that is fast approaching.

He said: “Traders are busy buying the new harvests and to do this, they need cash because farmers in our rural areas do not use electronic payment channels. Some do not even have bank accounts”.

He said many people are also buying goats and other animals that are transported to the South ahead of Christmas, adding that these are largely cash transactions contributing to the scarcity.

He said for N50,000, POS operators now charge N1, 000 as against N500 previously.

Kano

Abubakar Sadiq Danzaria, said POS operators are milking customers, raising charges because of the scarcity.

Another POS operator in Rijiyar Zaki Motor park, Adamu Salisu, who said he visited Guaranty Trust Bank (GTB) in Murtala Mohammed road said, “Banks give only N50,000 a day and that is not enough to cater to the needs of our customers. Therefore, we source the cash from traders or filling stations.”

On his part, the chairman of Singer Market Development Association (SIMDA), Alhaji Junaidu Muhammad Zakaria, agreed with the POS operators that cash scarcity exists.

Speaking, a businessman, Muntari Aliyu said: “if you go to the rural markets, you can withdraw N3 million from the POS operator. They have the cash.

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“People there don’t do business with our modern means of transactions; they don’t trust it that’s why they are not taking the money to the bank. It’s not in circulation the way it should”, he said.

Abdullahi Haruna, a grain merchant said it was tough for him to get N10 million that he needed to visit the grains market in Sumaila, on Wednesday.

“I had to use traders at the ‘Yankura and other markets in the Kano metropolis. This took me more than one week,” he said.

Zainab Almu, an entrepreneur, said the cash scarcity is as a result of the harvest season, and not necessarily a policy matter.

“Farmers who are bringing the grains from the villages are still sceptical about bank transfer. They want to collect their money in cash and go back home.

“There is the need for more sensitisation in this part of the country. Again, some of them have been duped in the past, especially during the cash crunch ahead of the 2023 elections.

“Many of them lost their fortunes because they received fake credit alerts from some dubious Nigerians. A lot of sensitisation must be done to convince such people to trust the system again,” he said.

She said she has accounts in Access, Zenith and GT banks. “All the banks are facing some challenges of notes. When you go to withdraw, there is limit to what they will give you,” she said.

Worry over cash scarcity in banks as farmers mop up naira

Daily Trust

metro

BREAKING: Appeal Court stops Sanusi’s reinstatement as Kano emir

Published

9 hours ago

March 14, 2025

Trends Admin

BREAKING: Appeal Court stops Sanusi’s reinstatement as Kano emir

The Court of Appeal sitting in Abuja has stopped the reinstatement of Alhaji Muhammadu Sanusi II as the Emir of Kano.

The court on Friday halted the enforcement of its January 10 judgment, which upheld the Kano State government’s repeal of the 2019 Emirates Council Law, pending the Supreme Court’s determination of an appeal on the same matter.

The ruling was unanimously delivered by a three-member panel led by Justice Okon Abang.

It ruled that the applicant, having served as Emir for five years before his removal, had legal rights that required protection until the Supreme Court delivers a final verdict.

The appellate court had earlier set aside a June 20, 2024 ruling by Justice Abubakar Liman of the Federal High Court in Kano, which nullified the Kano State government’s dissolution of five emirates in the state and the subsequent reinstatement of Sanusi as the 16th Emir of Kano.

The Court of Appeal then ruled that the lower court lacked jurisdiction over the case

Dissatisfied with the ruling, an injunction request was filed by Alhaji Aminu Babba Dan Agundi (Sarkin Dawaki Babba) against the Kano State Government, the Speaker of the State Assembly, the Inspector General of Police, the Nigeria Security and Civil Defence Corps, and other security agencies.

Dan Agundi sought to restrain the respondents from enforcing the appellate court’s judgment while awaiting the apex court’s decision.

However, in its unanimous decision, the Court of Appeal agreed that the application had merit and granted the injunction.

Justice Abang stated, “The law is settled. The court is enjoined to exercise its discretion judiciously and in the interest of justice.”

The ruling ordered that all parties must maintain the “status quo ante bellum,” preserving the situation as it was before the Federal High Court’s judgment on June 13, 2024.

metro

Tragedy as 25-year-old man hangs self in Ogun forest

Published

17 hours ago

March 14, 2025

Trends Admin

CSP Omolola Odutola

Tragedy as 25-year-old man hangs self in Ogun forest

The Police Command in Ogun State has launched an investigation into the death of a 25-year-old man, Toye Dominic, whose body was discovered hanging from a tree in a forest near Alagbodagbo Village, Ijebu Igbo.

In a statement released on Thursday, the command’s spokesperson, CSP Omolola Odutola, confirmed the incident and said the body was found around 4:30 p.m.

According to Odutola, a local hunter, Kareem Olawalose, came across the scene while on a hunting trip and promptly reported the discovery to the Ijebu Igbo Divisional Police Headquarters.

After spotting the body, Olawalose sought assistance from a nearby village, where he met the deceased’s elder brother, Joseph Dominic.

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The brother disclosed that Toye had left for the farm earlier in the day but failed to return, prompting a search by concerned family members.

“Policemen and villagers on arrival at the scene, observed that the deceased had set aside his farm tools before proceeding further into the forest, where he was found hanging from a tree.“No suicide note was found, and family members expressed shock and disbelief over the incident,” Odutola said.

She added that officers documented the scene with photographs, and the body was taken to General Hospital, Ijebu Ode, for further examination.
Odutola assured the public that the police would carry out a comprehensive investigation to determine the events leading to the tragedy.

She also encouraged community members to stay alert and support people who might be experiencing emotional distress, emphasizing the importance of mental health awareness and timely intervention.

Tragedy as 25-year-old man hangs self in Ogun forest

metro

Ex-Kwara Gov AbdulFatah Ahmed rearranged in N5.8bn fraud case

Published

17 hours ago

March 14, 2025

Trends Admin

Former Governor of Kwara State, Abdulfatah Ahmed

Ex-Kwara Gov AbdulFatah Ahmed rearranged in N5.8bn fraud case

The Kwara State High Court has fixed April 10 and 11 for the continuation of the trial of former governor AbdulFatah Ahmed and his finance commissioner, Demola Banu, over the alleged diversion of 5.78 billion naira from the Universal Basic Education Commission (UBEC) fund.

The Economic and Financial Crimes Commission (EFCC) is prosecuting the two officials, who have pleaded not guilty to the charges.

Testifying in court, Engineer Abdulsalam Olanrewaju, a former project manager at the Kwara State Universal Basic Education Board (SUBEB), revealed that despite the state paying counterpart funds in 2014 and 2015, no contracts were awarded.

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He stated that while the 2013 contractors were eventually paid after protesting delays, funds meant for subsequent projects remained unused.

During cross-examination, Olanrewaju clarified that signatories to the SUBEB account were the accountant, permanent secretary, and executive chairman of the board.

Earlier, a second witness, Dr. Musa Dasuki, emphasized that matching grants from UBEC and SUBEB are strictly meant for school infrastructure and cannot be diverted for other purposes.