Worry over cash scarcity in banks as farmers mop up naira

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