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 Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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