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
Afriland Properties Plc helped the NASD Over-the-Counter (OTC) Securities Exchange record a 0.04 per cent gain on Tuesday, December 10 as the share price of the property investment rose by 34 Kobo to N16.94 per unit from the preceding day’s N16.60 per unit.
As a result of this, the market capitalisation of the bourse went up by N380 million to remain relatively unchanged at N1.056 trillion like the previous trading day.
But the NASD Unlisted Security Index (NSI) closed higher at 3,014.36 points after it recorded an addition of 1.09 points to Monday’s closing value of 3,013.27 points.
The NASD OTC securities exchange recorded a price loser and it was Geo-Fluids Plc, which went down by 2 Kobo to close at N3.93 per share, in contrast to the preceding day’s N3.95 per share.
During the trading session, the volume of securities bought and sold by investors increased by 95.8 per cent to 2.4 million units from the 1.2 million securities traded in the preceding session.
However, the value of shares traded yesterday slumped by 3.7 per cent to N4.9 million from the N5.07 million recorded a day earlier, as the number of deals surged by 27.3 per cent to 14 deals from 11 deals.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
By Adedapo Adesanya
The Naira continued to appreciate on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), gaining 0.7 per cent or N10.23 on Tuesday, December 10 to trade at N1,542.27/$1 compared with the preceding day’s N1,552.50/$1.
The Central Bank of Nigeria (CBN)-backed Electronic Foreign Exchange Matching System (EFEMS) platform introduced to tackle speculation and improve transparency in Nigeria’s FX market has been attributed as the source of the Naira’s appreciation.
Speculators holding foreign currencies, particularly the US Dollar, have seen the value of their money drastically drop due to the appreciation of the local currency. This is forcing them to dump greenback into the system and take the domestic currency alternative- a move that has seen available FX increase.
Equally, the domestic currency improved its value against the Pound Sterling in the official market during the trading day by N6.81 to sell for N1,955.12/£1 compared with Monday’s closing price of N1,961.93/£1 and against the Euro, it gained N10.84 to close at N1,613.00/€1, in contrast to the previous day’s rate of N1,623.84/€1.
Data from the FMDQ Securities Exchange showed that the value of forex transactions significantly increased yesterday by $228.85 million or 257.2 per cent to $401.17 million from the preceding session’s $112.32 million.
However, in the parallel market, the Nigerian currency weakened against the US Dollar on Tuesday by N5 to settle at N1,625/$1 compared with the previous day’s value of N1,620/$1.
In the cryptocurrency market, Dogecoin (DOGE) lost 4.8 per cent to sell at $0.39116, Litecoin (LTC) depreciated by 3.3 per cent to trade at $110.25, Binance Coin (BNB) went south by 2.3 per cent to $681.44, Ethereum (ETH) dropped 1.6 per cent to finish at $3,671.08, and Cardano (ADA) slid by 0.5 per cent to $0.8837
Conversely, Ripple (XRP) jumped by 5.4 per cent to $2.23 amid a continued shift for the coin with its parent company seeing the benefits of a crypto-friendly regulatory environment for US-based companies.
XRP is closely related to Ripple Labs, a high-profile payments company targeted by the SEC in 2020 on allegations of selling the token as a security to U.S. investors. Ripple fully cleared a long-drawn court case in 2024.
Further, Solana (SOL) expanded by 0.8 per cent to $219.75, Bitcoin (BTC) grew by 0.4 per cent to $97,446.95, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Oil prices rose on Tuesday, influenced by increasing demand in China, the world’s largest buyer, as well as developments in Europe and Syria, with Brent crude futures closing at $72.19 per barrel after chalking up 5 cents or 0.07 per cent while the US West Texas Intermediate finished at $68.59 a barrel after it gained 22 cents or 0.32 per cent.
China will adopt an “appropriately loose” monetary policy in 2025 as the world’s largest oil importer tries to spur economic growth. This would be the first easing of its stance in 14 years.
Chinese crude imports also grew annually for the first time in seven months, jumping in November on a year-on-year basis.
Speculation about winter demand in Europe also contributed to the rise in prices as the period has been known for high demand.
In Syria, rebels were working to form a government and restore order after the ousting of President Bashar al-Assad, with the country’s banks and oil sector set to resume work on Tuesday.
Although Syria itself is not a major oil producer, it is strategically located and has strong ties with Russia and Iran – two of the world’s largest oil producers.
Market analysts noted that the tensions in the Middle East seem contained, which led market participants to price for potentially low risks of a wider regional spillover leading to significant oil supply disruption.
The market is also looking forward to the US Federal Reserve, which is expected to make a 25 basis point cut to interest rates at the end of its December 17-18 meeting.
This move could improve oil demand in the world’s biggest economy, though traders are waiting to see if this week’s inflation data derails the cut.
Crude oil inventories in the US rose by 499,000 barrels for the week ending November 29, according to The American Petroleum Institute (API). Analysts had expected a draw of 1.30 million barrels.
For the week prior, the API reported a 1.232-million barrel build in crude inventories.
So far this year, crude oil inventories have fallen by roughly 3.4 million barrels since the beginning of the year, according to API data.
Official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
Also, the market is getting relief from the recent decision of selected members of the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ to delay the rollback of 2.2 million barrels per day of oil production cuts to April from January. Another 3.6 million barrels per day in output reductions across the OPEC+ group has been extended to the end of 2026 from the end of 2025.
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