Is it low key Christmas? The signs appear to indicate low mood feeling around the country. Ordinarily, this time in December the Christmas festivities is felt as preparations towards celebrations are upbeat. It is an annual sparkle and, naturally light up the atmosphere. The 2024 celebrations may be special for different reasons. Umar Dalhat Muaz get the views of Nigerians about the approaching Christmas.
As Christmas and New Year festivities approach, residents in Kuje, an area council in Abuja, are grappling with severe cash shortages, a situation that has worsened since November.
The scarcity, which is affecting everyone from business owners to street beggars, has become a major source of frustration in the region.
Cash Scarcity Strains in Abuja
Many residents, including small business owners, Point-of-Sale (POS) operators, and even those dependent on begging for a living, have expressed their distress over the ongoing cash crisis. With ATM machines frequently running empty and POS charges soaring, accessing money has become increasingly difficult.
“People hardly go to ATM machines because they are always empty,” said Umar Sani Shuaibu, a local resident. “Before I can get cash from a POS operator, I must book for it,” he added.
Shuaibu shared that he was charged as much as N7,000 for a N500,000 withdrawal, a fee that would likely be higher if not for his relationship with the POS operator.
Saifullahi Haruna, another resident, lamented the rise in transaction charges. “We used to pay N100 for a N5,000 transaction, but now we’re being charged N300,” he said, highlighting the escalating costs that come with accessing cash.
POS Operators Making Fast Gains
POS operators, who are pivotal in helping people access money, are also feeling the strain.
Abubakar Sadik, a POS operator in Kuje, explained the challenges of obtaining cash. “Last week, I had to travel to a village in Abaji just to get cash,” he said.
Muazu Abubakar, another POS operator, shared his frustration with the exorbitant charges he faces. “I had to pay N3,000 for N100,000 in cash,” he said, adding that he could only offer N5,000 per transaction, with a N300 charge.
The scarcity is also affecting small-scale businesses.
A pure water seller, who wished to remain anonymous, noted that his sales have plummeted. “Before, I sold four to five bags of pure water daily, but now I barely sell two,” he said. Without cash on hand, many customers are hesitant to purchase even small items, and the lack of mobile payment options exacerbates the problem.”
Even those who rely on begging are feeling the pinch. Yusuf Saidu, a beggar in the area, described how difficult it has become to get by. “People look at me with pity, touch their empty pockets, and walk away,” he said, highlighting the struggle for basic necessities during the holiday season.
The Central Bank of Nigeria (CBN) has promised to address the situation, with CBN Governor Olayemi Cardoso warning that penalties would be imposed on financial institutions failing to meet cash distribution standards.
ASSBIFI Slams CBN for Slow Responses
However, critics, including the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI), argue that the CBN has not adequately addressed the root cause of the shortage, which has worsened since the naira redesign.
“The banks have only two sources of cash: the CBN and retailers,” said ASSBIFI President Olusoji Oluwole. “The CBN has not met the banks’ demands, and retailers often sell cash for profit, making it even harder to access funds.”
As the festive season looms, many Nigerians are left hoping for quick relief before the holidays.
