Cash Scarcity Hits Calabar: Residents Struggle as Banks and ATMs Fail to Meet Demand
Residents of Calabar, Cross River State, are grappling with severe difficulties in accessing cash as banks and Automated Teller Machines (ATMs) across the city fail to meet rising demand. Many residents have raised concerns about the worsening situation, which they say has intensified over the past week.
Speaking to the News Agency of Nigeria (NAN) on Wednesday, frustrated residents described long queues at ATM points and lamented the impact on daily life and small businesses. According to reports, the cash shortage is particularly affecting businesses that lack Point of Sale (POS) machines or online banking facilities, forcing them to rely solely on cash transactions.
Small Businesses and Residents Bear the Brunt
Small-scale business owners and traders are facing significant setbacks as cash remains the primary mode of transaction for many. The situation has created a ripple effect, with residents spending hours at ATM points with no guarantee of success. In addition, POS operators have capitalized on the scarcity, charging exorbitant fees for cash withdrawals, further compounding the problem.
Voices from the Community
- Mr. Abel Uwem, a teacher, described the situation as “terrible and tortuous,” expressing frustration at the lack of cash availability, particularly during the yuletide season.
“How do we cope during the yuletide without cash? Many of the ATM machines in town are not dispensing cash,” he said. - Anekan Bassey, a mechanic, pointed fingers at banks for their restrictive withdrawal policies.
“The problem is caused by banks refusing to give above ₦5,000 cash to customers. POS operators claim they buy cash from banks and petrol stations, then sell it to the public just to stay in business. Even with money in your account, you can’t access it. The situation is becoming unbearable,” he explained. - Miss Uduak Enoch, a nurse, shared her ordeal of waking up at 5:00 am to queue at an ATM, only to be met with disappointment.
“There is no guarantee you’ll get cash. Most ATMs in the city do not dispense more than ₦10,000,” she said.
POS Operators Defend High Charges
POS operators, on their part, argue that the high fees are a consequence of the scarcity and the cost of acquiring cash. Mr. Omini Mike, a POS operator, justified the increased charges, stating that he purchases cash from petrol stations and supermarkets.
“When you see me charging more on transactions, it’s not my fault. I need to make a profit because I invested to acquire the cash,” he said.
Broader Implications
The cash shortage in Calabar has far-reaching implications. Apart from disrupting daily transactions, the crisis is affecting residents’ ability to celebrate the holiday season, a time traditionally marked by increased spending. Businesses reliant on cash payments are losing revenue, while residents are left with limited options to meet basic needs.
A Call for Action
As the cash scarcity worsens, residents are urging banks to address the situation urgently. Many believe that improving cash distribution systems, increasing ATM withdrawals, and ensuring transparency in financial operations can alleviate the crisis. Additionally, calls are being made for regulators to step in and monitor the activities of POS operators to prevent exploitation.
The growing frustration among Calabar residents highlights a systemic issue that demands immediate attention, particularly as the festive season approaches.
