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Worry over cash scarcity in banks as farmers mop up naira

Published

1 month 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

Yuletide: Travellers want fare discount for road trips

Published

7 hours ago

December 21, 2024

Trends Admin

Yuletide: Travellers want fare discount for road trips

Bemoan high fares

Passengers travelling to their country homes for the Christmas and new year day celebrations have urged the Federal Government to extend the free rail services announced early in the week to road transport routes across the country.

Some of the travellers who complained about the high fares called on the Federal Government to restore the 50 percent fare reduction on inter-state luxury bus routes granted to road passengers at this time last year.

The passengers who spoke at various terminals and loading stations of long distance road transport companies in Lagos, were reacting to the upsurge in fares to about N40,000 on luxury buses and N65,000 on mini buses going to the South-East.

Reports from some of the boarding stations revealed that upon hearing the announcement of free train ride, some passengers thronged the loading stations at various points in Lagos to benefit from the gesture, but were disappointed when they were informed that the offer did not cover road transport.

At Terminal 1 in Oshodi, Alafia, Jibowu, Mazamaza, and private stations in the Cele/Ejigbo axis, on Saturday, passengers bemoaned the high cost of travelling on both the big and small buses, disclosing that many people were not travelling because they couldn’t afford “the exorbitant fares the transport firms are collecting.”

Interestingly, a trip on board Toyota Sienna which used to attract slightly higher fare than on a typical mini bus, is the same at N40,500.

One of the passengers told our reporter one if the stations in Cele, “You press people should please tell (President Bola) Tinubu that poor masses cannot afford to go home this Christmas because there is no money in the country.

“(President) Tinubu should please repeat the 50 percent discount on long distance fares which some of us enjoyed last year to travel home.”

At the nearby Young Young Shall Grow station, a passenger who planned to travel to the east recalled how he took advantage of the 50 percent fare discount to travel from Abuja to Onitsha and back in 2023, and wondered why the Federal Government has not considered the re-introduction of the palliative this festive season.

According to the man who gave his name as Chinedu Uzoechina, his intention to travel to Anambra state and back with his wife and five children, has been stalled by the high transport fares being charged at the various terminals.

Uzoechina, who came to book for seats in advance, lamented, “I was hoping that the 50 percent fare discount that followed the increase in fuel pump price would be available this year, but that has not been the case this year. Forty thousand into seven is N280,000 for one-way luxury tickets.

“If you add the cost of coming back, it means I will spend nothing less than N560,000 on transportation alone for seven of us. Where will I get that kind of money? I have called my wife to inform her of the situation here (at the terminals in Cele).

“She is not happy that we are not travelling anymore, but what can I do?”

According to him, the only thing that can make his family travel again is if the Federal Government extends the free train ride offer to long distance road transport routes, like Lagos-east, or reduces the fares in collaboration with the operators.

Like Uzoechina, many other intending travellers were still hopeful that the government wiuld still intervene with a fare discount, even as they disclosed that they would either cancel the trips outrightly or reduce the number of tickets to be bought, if their hopes are dashed.It was learnt that the fares were slightly lower by about N2,000 at Terminal 1 where both big and mini buses have been loading for day and night trips at Oshodi.

Reacting to the passengers’ complaints about high fares at the terminal owned by the Lagos State Government, Damian Ezuma, the manager of Izu Chukwu Transport, blamed the situation on the rising cost of maintaining the buses as well as on the pump price of diesel, which he said, is as high as N2,000 a litre in some parts of the country.

“It is not our fault. The cost of maintenance is so high that it is only by the grace of God that some of transport companies still manage to keep their buses on the road these days. Do you know that one big bus tyre costs between N250,000 and N500,000, depending on the quality and brand?” Ezuma argued.

He confirmed that many intending travellers who heard about the free train services offer by the Federal Government have been coming to the terminal make enquiries on whether long distance-plying buses are part of the gesture and whether last season’s fare discount applies this year.

Many of them leave the terminal disappointed and deciding not to travel anymore, but opting instead to wait for a possible fare palliative from the government.

Also commenting on the reason for the high fares, a manager at Chisco Transport’s head office in Lagos explained that the unfavourable naira-dollar exchange rate has impacted on the prices of replacement parts and maintenance costs generally.

But a major factor is the fact that during the peak festive season, buses are usually full when leaving major cities like Lagos and Abuja, but are almost empty in their return journeys.

So some operators slightly adjust their fares upward to cover the losses incurred during return trips.

In 2023, the special fare discount by government through the luxury bus owners took effect on December 21, and lasted till the second week of January, 2024.

metro

Navy arrests 19 Nigerians attempting to reach Europe by hiding on ship

Published

10 hours ago

December 21, 2024

Trends Admin

Navy arrests 19 Nigerians attempting to reach Europe by hiding on ship

The Nigerian Navy Ship (NNS) BEECROFT has successfully apprehended 19 individuals attempting to stow away on Europe-bound vessels.

In a statement issued on Saturday in Lagos, the ship’s Information Officer, Lt. Hussaini Ibrahim, disclosed that 15 stowaways were intercepted on Dec. 19 aboard the European-bound Moto Tanker (MT) KRITI RUBY. Another four were caught on Dec. 21 aboard MT MCC YANBU.

“Preliminary investigation revealed that the stowaways boarded the vessels at night and concealed themselves in the rudder compartment while attempting to illegally migrate to Europe,” Ibrahim stated.

The Navy’s Quick Response Team (QRT), operating from ATLAS COVE and using the Falcon Eye Alignment under the Nigerian Navy Maritime Domain Awareness Facility, facilitated the interception of the 15 individuals near the Lagos fairway buoy.

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Ibrahim further explained that credible intelligence led to the interception of the additional four stowaways by Navy personnel deployed on escort duties aboard the vessel.

“The prompt response of the QRT saved the stowaways from exposure to life-threatening situations during the long voyage,” he added.

The first group of 15 individuals has been handed over to the Nigeria Immigration Service, Lagos State Port/Marine Command, Apapa, for further investigation and necessary action. The remaining four suspects will also be transferred in due course.

“The presence of stowaways poses serious security threats to maritime operations, including risks of smuggling, piracy, drug and human trafficking, among other maritime crimes,” Ibrahim noted.

He emphasized that under the leadership of Chief of Naval Staff Vice Adm. Emmanuel Ogalla, NNS BEECROFT will continue maintaining security along Lagos waterways and surrounding creeks to support safe maritime activities and economic growth.

Navy arrests 19 Nigerians attempting to reach Europe by hiding on ship

metro

Troops arrest four Ambazonian rebels in Taraba

Published

10 hours ago

December 21, 2024

Trends Admin

Nigerian military troops

Troops arrest four Ambazonian rebels in Taraba

Troops of the 6 Brigade Nigerian Army/Sector 3 of the Operation Whirl Stroke (OPWS), have arrested four suspected members of Ambazonian rebels in Taraba.

The News Agency of Nigeria (NAN) reports that Ambazonia is a rebel group operating in neighbouring Cameroon Republic.

A statement on Saturday in Jalingo by Capt. Olubodunde Oni, Acting Assistant Director Army Public Relations, said the suspects were arrested at a hotel in Takum town.

The statement said that acting on credible intelligence, the suspects were tracked and apprehended.

According to the statement, during initial interrogation, the suspects confessed to being part of the rebel group involved in arms proliferation in exchange for cocoa with their Nigerian collaborators.

It said that four mobile handsets were recovered from the suspects now in detention undergoing further investigation.

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The statement also said that in another operation following actionable intelligence, troops deployed at Natilde community in Bantaji District of Wukari Local Government Area intercepted a truck with registration number WKR 66 BB, transporting 19 pieces of stolen pipelines belonging to the Nigerian National Petroleum Corporation Limited (NNPCL).

It said that further collaborative efforts with the Nigeria Security and Civil Defence Corps (NSCDC) in Wukari Division led to the recovery of an additional 11 pipes, bringing the total to 30.

“The recovered items have been handed over to the NSCDC Wukari Division for further investigation and necessary action.

“The 6 Brigade Nigerian Army will remain resolute in its commitment to safeguarding lives and property while ensuring the security of critical national infrastructure.

“We urge members of the public to continue providing timely and credible information to security agencies to enhance our collective efforts in maintaining peace and security,” the statement added.