Economy
POS Operators Lament Rationing of Cash by Banks, CBN Calls for Calm
By Dipo Olowookere
Some Point of Sale (PoS) operators in Lagos and other major cities across the country are lamenting the difficulty they face lately in sourcing cash to carry out their business operations.
A few of those who spoke with Business Post said the situation may force them out of business any time soon if the Central Bank of Nigeria (CBN) fails to step in.
They said getting cash from deposit money banks (DMBs) to transact business is now very difficult as commercial banks ration it to them.
One of the operators in the Egbeda area of Lagos State, who identified herself as Mrs Modupe Adediran told our correspondent that the banks are not helping matters.
“I was at Zenith Bank today (Thursday) to get N100,000 since that was what they gave out on Monday, but I was only given N50,000 and when I asked why, I was told they did not have enough cash at that moment,” Mrs Adediran said.
“Last month, Zenith Bank was still paying out N500,000 cash at once to their customers, though that is the allocation for the week per customer. But since the beginning of this month, they have been giving N50,000 per day until last Monday when they paid N100,000.
“This is already getting me frustrated because it is not enough for me to transact my business for the day.
“If the CBN does not quickly wade into this issue, we might return to the era of using Naira to buy Naira like we did earlier this year when we experienced a similar cash scarcity,” she added.
Another operator in the Ipaja area of Lagos, Mr Femi Ogundare, said he now buys cash from stores, petrol stations and others to keep his business going.
“I have resorted to buying cash from petrol stations, super stores and others because of the rationing of cash by banks.
“I went to First Bank to get some cash but I could not get more than N20,000, same as GTBank, which has not increased its allocation from N20,000 since the first cash scarcity period earlier this year,” he said.
For Ms Feyikemi Atanda, who operates in the Ikeja area of the metropolis, the cash scarcity is getting worse, forcing operators to increase their transaction charges.
“How do you expect me to pay to get cash from different sources and charge the same old fee for using my service?” she queried.
Her view was echoed by Mrs Adediran and Mr Ogundare, who emphasised that the cost of getting cash from other sources apart from the banks would be passed on to customers, who are already resisting this.
“I don’t argue with them (customers) when I tell them to pay N300 for N10,000 instead of N200. I just tell them they can go to their banks or ATM points to get their cash,” Mr Ogundare said.
However, an employee of one of the tier-1 lenders, who asked not to be named because he was not authorised to speak to the press on the matter, said it is not the fault of the banks to ration what they dispense to customers.
On Wednesday, the Central Bank of Nigeria (CBN), in a statement, blamed Nigerians for the recent cash scarcity, accusing them of hoarding cash, ostensibly in fear that the old currency would no longer be accepted as legal tender from December 31, 2023, despite the Supreme Court extending the validity of the banknotes beyond the date.
“The CBN has adequate cash to meet the day-to-day transaction needs of Nigerians.
“We appeal to Nigerians to be patient while the CBN does the needful to ensure the availability of cash, particularly during the Yuletide and beyond,” a statement signed yesterday by CBN’s Acting Director of Corporate Communications, Mrs Hakama Ali, said.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.
Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.
In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.
Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.
Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.
On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.
Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.
Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.
By Adedapo Adesanya
Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.
In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.
Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.
“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.
He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.
Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.
“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”
By Adedapo Adesanya
The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.
Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.
At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.
Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.
This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.
Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.
Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.
As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.
The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.
Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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