Business
Fresh Naira scarcity hits Kano, Sokoto, Edo, others
Published
12 months agoon
Fresh Naira scarcity hits Kano, Sokoto, Edo, others
Despite recent assurances by the Central Bank of Nigeria that there is enough naira in circulation, reports of scarcity have emerged across the country.
A survey by The PUNCH, on Wednesday, confirmed scarcity in some parts of Abuja, Lagos, Kano, Kwara, Gombe, Edo, Sokoto, and Ekiti States. Many bank customers and Point of Sales operators, who spoke to The PUNCH, lamented that it is becoming a challenge to access cash for their economic activities.
This is coming weeks after the apex bank affirmed that it has enough currency notes in the market and hence no need for panic withdrawals by members of the public.
In a circular titled ‘All Banknotes Issued by the CBN Remain Legal Tender,’ signed by Director, Corporate Communications, Isa AbdulMumin, the bank stated that it was aware of reported scarcity of cash across some major cities. It noted that there have also been concerns among some members of the public over the legality of old naira notes.
The bank said, “For the avoidance of doubt, while reiterating that there are sufficient banknotes across the country for all normal economic activity, we wish to state unambiguously that every banknote issued by the Central Bank of Nigeria (CBN) remains legal tender and should not be rejected by anyone, as stipulated in Section 20(5) of the CBN Act, 2007.”
It cautioned members of the public to avoid panic withdrawals and stressed that it has enough currency notes to facilitate normal economic activities.
The concern from members of the public over the legality of old naira notes is connected to issues surrounding the naira redesign policy of the apex bank.
In October 2022, the former CBN governor, Godwin Emefiele, announced a plan to redesign some naira denominations (N200, N500, and N1000 notes) and reduce currency circulation. He also stated that the old versions of the redesigned notes will lose their legal status by January 31, 2023.
The plan was met with resistance and state governments dragged the apex bank to the Supreme Court on February 3, requesting for an extension of the deadline. By March 2023, the apex court invalidated the new naira design policy and extended the validity of the notes until December 2023.
Recently, the CBN announced plans to extend the validity of the old N200, N500, and N1,000 notes indefinitely. The bank noted that it was working with relevant authorities to vacate the subsisting court ruling on the same subject. A recent report in local media confirmed that the CBN has filed an application before the Supreme Court seeking an extension for old naira notes to remain in circulation.
According to a report from the CBN, the currency in circulation increased by 3.75 per cent to N2.76tn in September 2023.
Naira scarcity resurfaces in Lagos
However, cash scarcity, a major downside of the CBN’s naira redesign policy, has begun to resurface. Visits to some banks on Wednesday revealed scanty banking halls and ATM galleries.
A customer, who gave his name as Ganiyu Tunde, at the Union Bank branch along Oshodi Expressway in Lagos claimed that banks were only dispensing N5,000 via ATMs to non-customers.
Bank customers of Union Bank were, however, able to get up to N20,000 at the ATM and inside the bank. The rows of ATMs at an Access Bank branch nearby were empty because there was no cash in them as of the time of filing this report. A banker who spoke to The PUNCH on the condition of anonymity blamed the cash scarcity on weak supply from the CBN.
The banker said, “It is the CBN that is responsible for this cash scarcity. We are not getting enough from them. They are just causing unnecessary suffering for the masses.”
A bank teller who works with Guaranty Trust Bank Plc in their Palmgrove Branch, Lagos, affirmed to The PUNCH that customers are not allowed to withdraw more than N20,000.00 across the counter. According to the teller, the bank was experiencing a shortage of cash.
The PUNCH noticed that not all banks are experiencing shortages of cash. For instance, Union Bank’s Isolo branch showed no signs of scarcity. A staff member, who only gave her name as Ope, said, “You can withdraw money if you want. I have heard something like that, but we are dispensing funds.”
At Access Bank Oshodi branch, customers were observed withdrawing cash from ATMs outside the banking hall, with a bank staff member adding, “There is cash. Everybody is withdrawing.”
Scarcity hits Abuja, Kano, Kwara, Sokoto, Ekiti
A respondent in the Federal Capital Territory, Festus Okoromadu, was concerned that he could not withdraw at the First Bank branches in his area.
He said, “What I was told was that the bank’s network was temporarily unavailable, which made the transaction impossible. This has been the case at some of the banks in the FCT in recent times, withdrawing money is becoming more challenging.”
In Kano, some commercial banks were not honouring withdrawal requests from customers, and ATM galleries were dry when The PUNCH visited. Our investigation further showed that the few banks that were paying customers did not give beyond certain amounts.
A customer who simply gave his name as Hayatudeen said, “Many banks lack money to give to customers and when you inquire, they will not give you any satisfactory explanation as to why.”
He noted that the story is the same with POS operators because they are also complaining of scarcity. He added, “Even though most of the POS operators are getting their money from traders and other business operators, they still complain of the scarcity.”
He further alleged that many POS operators have increased their charges by about 50 percent.
In Kwara, banks are rationing cash to their customers. The PUNCH gathered that some commercial banks are not allowing customers to withdraw more than N20,000 daily from their accounts.
Customers of Zenith Bank have it differently, they are still allowed to make daily withdrawals of up to N500,000. Further investigations revealed that this scarcity started three weeks ago and customers of UBA, GTB, First Bank, Union Bank, and others are the worst hit.
This scarcity also extends to customers who want to withdraw at ATMs, as they are not allowed to withdraw more than N20,000 daily from one account. Some of the bankers who spoke to The PUNCH noted that customers are no longer bringing in a lot of cash to save in their accounts leading to the shortage of cash.
One banker said, “Banks do not have enough cash to pay out to customers because people are not bringing money to the bank.
“We only ration the available money among the customers. Anyone that comes to withdraw is paid N20,000 but few highly placed customers are given N50,000 when they come to withdraw.”
In Ekiti State, an official at the Union Bank branch, Okesa Ado Ekiti, revealed that the branch was unable to meet the specific withdrawal demand of its customers because “there is no sufficient cash for now. We give what we can afford to ensure it goes around.”
A bank customer of one of the First Bank branches in the capital city, who only identified herself as Tope, lamented, “I do not know exactly what the problem is, but no customer was able to get more than N10,000 – N20,000 in the bank hall. I learnt it was the same story at their ATMs in the bank.”
At the ATM points of Wema Bank, Okesa area, bank customers with Wema Bank ATM cards could withdraw N20,000. Customers with ATM cards from other banks could only withdraw N10,000.
In Sokoto State, a resident, Kabiru Nura, told The PUNCH, “Even though the issue is becoming more relaxed the scarcity is still very much with us. The funniest part is at ATMs, you hardly get cash at ATMs these days. The last time this happened was during the naira redesign policy, and this should really be a thing of the past now.”
Edo, Gombe PoS operators bemoan naira scarcity
Point of Sale operators in Gombe State are worried about the resurging naira scarcity in the state. Adamu Salisu, who operates a stand in the Bagadaza area of the state, said, “All of a sudden, we cannot get free access to lump sum of cash. I and some of my colleagues now rely on traders in the market who get some cash from transactions to remain in business.”
Also speaking, Sandra James, a resident in the state, continued, “Many people prefer to do transfer through phone as just a few have access to funds. It is sad.”
Another PoS operator, Mohammed Rafi, added, “We are going through so much stress to get money to give customers, but customers are complaining because we have increased our charges as we had previously done during the early part of the year.”
In Edo, POS operators, store owners, and bank customers lamented their inability to get cash to The PUNCH.
A POS operator, who only gave her name as Faith, declared that cash is scarce in Benin as banks now ration the amount that can be withdrawn at the ATMs.
She said, “I noticed that the scarcity of cash began late last week. You can only get N20,000 from your bank’s ATM and those who come with other banks’ ATM cards may get N10,000. They also refuse to pay across the counter while you can get N10,000 if you are lucky.
“I also observed that the money they put in the ATM is not always enough and they (bankers) also come out to withdraw most of the cash. They (bankers) also do deals with big-time PoS operators, so it has been difficult for small-time operators to do business.
“What I do now is to get cash from a friend who sells on Lagos Street.”
A trader, Grace, who runs a shop on Sapele Road, added, “I have noticed that cash is in short supply and most people who buy from me either transfer or pay through my PoS. However, it has not affected business, which is a good omen.
We are unaware of scarcity — Bank customers association
According to the President of the Bank Customers Association of Nigeria, Dr Uju Ogunbunka, members have reported any such issues with cash withdrawals.
He said, “This news surfaced a few weeks ago, and some of the banks I visited gave out cash to their customers. If there is a limitation at all, then it means something is driving it. But I see no reason because there is no issue regarding whether it’s new notes or old notes; that problem has already been resolved. But if anything is driving this report, I think we need to find out.
“Maybe they want to encourage online banking and things like that. But I don’t think there is anything like a cash squeeze now. I will try to visit some banks and see for myself. The information I have now doesn’t suggest anything like a cash squeeze.”
The National President of the Association of Mobile Money and Bank Agents in Nigeria, Victor Olojo, added that more needs to be done in terms of increasing alternatives to cash.
He told The PUNCH, “The CBN hardly has control of the whole cash issues, and they need to be very clear on if it is the old currency we are using or the new, they are the custodian of our currencies. However, we as a country are on a good trajectory. In terms of raising other channels of payments, more needs to be done.”
@PUNCHNG
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Oil marketers counter Dangote over allegation of substandard product importation
The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has countered the claim by Dangote Refinery that any oil importers landing petrol at a price cheaper than what the refinery is selling are importing substandard products and conniving with international traders to dump low quality products into Nigeria.
The refinery had made the claim on Sunday.
In a statement yesterday, DAPPMAN’s Executive Secretary, Olufemi Adewole, said none of its members was engaging in activities that could shortchange Nigerian fuel users by conniving with anyone to bring in low quality product into the country.
“We’ve said this for the umpteenth time, and it bears repeating, those in the downstream sector business of petroleum products trade are patriotic Nigerians who will not shortchange Nigerian citizens for filthy lucre. Our members are in this business to add value to the businesses of their fellow Nigerians and not to defraud them.
“Prices of products in the international market are dynamic as they’re dictated by prevailing circumstances at every given situation. We calculate our landing costs based on the dynamics of market forces, and the templates are always in the public domain. To claim that if the landing cost of imported product happens to be lower than that of the refinery indicates importation of low quality product is not only preposterous, but also fallacious. In any case, the management of the refinery has, until now, kept its cost and prices close to its chest and put it away from public scrutiny. “
“This type of submission, targeted at projecting our members negatively before the public, cannot help the management’s desire to have oil marketers patronise its products. What will ensure such patronage is transparency, fair play, and readiness to compete with others, including foreign refineries, on an even keel and on a level playing field.”
Adewole said the disclosure by the refinery’s management that the facility has a huge stock of 500 million litres fuel reserve came to its members as news.
“We were surprised because we believe that if the refinery has such huge stock, it’s the marketers that should be put in the know first.
‘Secondly, it was even more surprising given that the news came about the time the refinery was working on rationing what each marketer could pick from the refinery. If they had such huge stock, how is it then that they’re rationing what marketers could buy?
“On all these developments in the industry, the position of our members is very clear: we’ve always played by the rules, and we’ll continue to play by the rules. We’ll not be tired of advocating for a level playing field and a highly competitive and transparent sector that’s devoid of arm twisting and devoid of any form of dominant tendencies,” he said.
Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said it had concluded plans to import the best quality petroleum product and sell at far cheaper prices.
The association said it was awaiting the NMDPRA to grant it import licence, saying it “has successfully incorporated a strategic business unit called PETROL.”
Its spokesman, Joseph Obele, said PETROAN had concluded plans with her foreign refinery counterparts and financial partners to import the best quality of PMS and “then sell far less than the present selling rate of PMS in Nigeria.”
He said the allegations that PETROAN would import inferior products and that an international company was trying to establish a PMS blending plant in Lagos “are all strategies for Dangote Refinery to push others out of the market…”
Also, Pinnacle Oil and Gas Limited, in a statement by its Chief Executive Officer, Bob Dickerman, denied blending substandard petroleum products.
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Why Protesters demanded Kyari’s resignation
Scores of youths stormed the headquarters of the Nigerian National Petroleum Company Limited on Monday, demanding the immediate resignation of the Group Chief Executive Officer of the company, Mele Kyari.
The protesters, led by some Civil Society Organisations, described Kyari’s leadership as incompetent, citing skyrocketing fuel prices, endless fuel queues, and economic hardship in Nigeria.
The protesters carrying placards with different inscriptions such as “we demand the immediate resignation of Kyari”, among others, said the leadership of the NNPCL boss has failed.
The aggrieved youths led by Abdullahi Bilal of the (Two Million Man March Against Oil Scam Cabal) and Barrister Napoleon Otache and Olayemi Isaac from Citizens and Economic Freedom Rights Activists in Nigeria demanded immediate action to address what they described as failed leadership in managing the country’s oil sector.
Central to the protests were grievances over skyrocketing fuel prices and the never-ending queues, which they argued have driven inflation and plunged millions of Nigerians into poverty.
They also decried the importation of adulterated fuel, which they said is a corrupt practice that harms citizens by damaging vehicles and businesses.
They demanded an immediate halt to these imports and accountability for those responsible, questioning how substandard fuel continues to enter the country despite quality control assurances.
Additionally, the group criticized the unfulfilled promise of the Dangote refinery to resolve Nigeria’s fuel crisis, expressing frustration over the billions of dollars spent on refinery development and refurbishing existing facilities.
They argued that despite these investments, fuel shortages persist, leaving Nigeria reliant on costly imports even as an oil-producing nation.
They urged President Bola Tinubu to intervene by overhauling leadership in the oil sector, enforcing greater accountability, and putting citizens’ needs first. The protesters vowed to continue mobilizing until their demands for reform and transparency are met.
Speaking to journalists during the mass demonstration, Abdullahi Bilal said, “The Two Million Man March stands as a united voice for every citizen who has been betrayed by a system that continues to enrich a few at the expense of many.
“Today, we call for the immediate resignation of the current leadership in the country’s oil sector. Their management has failed Nigerians.
“Under their watch, we have seen fuel prices skyrocket without consultation or consideration of the devastating impact on the people. We have endured fuel scarcity while substandard, adulterated fuel is imported, causing further hardship.
“We demand the complete removal of the fraudulent fuel subsidy regime that has only served to enrich a select few. Full deregulation is necessary to introduce transparency, competition, and fairness to our oil sector.”
On their part, Otache and Isaac, insisted, “This act of economic sabotage has led to endless fuel queues, skyrocketing fuel prices, and unprecedented disruptions in the daily lives of Nigerians.
“We demand an immediate end to fuel queues, transparency, and accountability from all involved parties. We want to know how substandard fuel continues to enter the country despite assurances of quality control.”
On July 7, 2019, former President Mohammadu Buhari appointed Kyari as the 19th GMD of NNPC, but with the passage of the Petroleum Industry Act, his current portfolio is without recourse to previous employment ranks in the company.
NNPCL reacts
Reacting, the NNPCL spokesperson, Femi Soneye, said the protestors lack understanding of the sector.
He explained that contrary to their agitation, the GCEO ensured Nigerians had access to fuel at N620 per litre for over a year, even when the landing cost was above N1,100.
Responding via a chat, Soneye said, “Unfortunately, they lack understanding of the sector. If they were informed, they would know that the GCEO is not responsible for the fuel price increase; in fact, he ensured Nigerians had access to fuel at N620 per litre for over a year, even when the landing cost was above N1,100.”
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Business
Renewed Hope Agenda and Impacts in Aviation* By Mary Odoma
Published
8 hours agoon
November 5, 2024*Renewed Hope Agenda and Impacts in Aviation*
By Mary Odoma
President Bola Tinubu’s knack for selecting top talent is unparalleled. In his quest to build a prosperous Nigeria, he’s assembled an exceptional team. By leveraging their expertise, experience, and strategic insight, he’s fostering national stability, economic growth, and a sustainable future.
His latest win is in Aviation and Aerospace Development, where he’s appointed a fearless and straightforward leader, Festus Keyamo, SAN. Keyamo’s commitment to excellence makes him an ideal fit. President Tinubu’s vision for Nigeria is taking shape, and his leadership choices are truly commendable.
A dedicated, charismatic and impactful lawyer, the dynamic and astute developer is a terror to mischief makers and enemies of progress. A tough and forceful personality who is determined with an ultimate goal to change Nigeria.
Appointed on 21st August 2023 as the helmsman of the Ministry, Keyamo has been unwavering in his drive for positive transformation, reforming the sector and bringing about enduring positive impact in a transparent manner.
His Ministry has the core mandate of regulating air travel and aviation services in the country. It is also responsible for overseeing air transportation, air development, maintenance, provision of aviation infrastructural services and other needs.
A very patriotic Nigerian, Chief Festus has several achievements, in line with the Renewed Hope Aviation Roadmap approved by President Tinubu to his credit.
In a steadfast commitment towards revitalizing the nation’s aviation sector, Mr Keyamo was able to ensure the approval of the concession of the Nnamdi Azikiwe International Airport (NAIA), Abuja and Mallam Aminu Kano International Airport (MAKIA), Kano Airports. This is in line with the initiation of the Nigerian Airport Concession Strategy.
Also, in line with the Federal Ministry of Aviation Roadmap, Chief Keyamo initiated the signing of an MoU with the Nile University for the take-off of African Aviation and Aerospace University (AU). This milestone achievement of the Minister aims to integrate and create an avenue for the training, research and development of ready middle-class manpower for the sector.
Equally, under his watch, the pragmatic leader led the Ministry into partnership with the ICRC and also a collaboration with the IFC on infrastructural development. This partnership is to both develop and implement a comprehensive and durable framework that will meet the infrastructural needs of the sector over a long period.
Through Keyamo’s congruence and dynamism, the BASA arrangement is another revolutionary innovation aimed at ensuring the operationalization of direct flights between Nigeria and Brazil.
Keyamo’s motivation and altruistic devotion to having a functional aviation and aerospace sector also moved him to upgrade the Muhammadu Buhari, Airport, Maiduguri to the standard of an international airport. This airport is ready to commence full operation on January 1, 2025
In the area of staff motivation, retirees of the Ministry now have no cause for alarm as their interest is covered. Recently, the Ministry honoured 24 retirees drawn from the lowest rung to the highest. It is in a bid to acknowledge those who have contributed immensely to the growth and development of the sector as Nation-builders.
His prompt response to issues including distress reveals an empathetic personality and someone who is very much alive to his responsibilities. Recently, while reacting to the accident involving a helicopter on the 24th October 2024, Mr Keyamo, immediately upon receiving the distress call, activated protocols aimed at search and rescue operations, mandating all relevant bodies to do everything humanly possible to ensure the safety of the passengers on board the ill-fated vehicle.
The Minister was also actively involved with all the relevant agencies towards ensuring a coordinated response. His active and physical involvement led to the minimization of casualties.
In a show of collaboration and solidarity, the Hon. Minister travelled to far away Marrakesh, Morrocco, to give support to the 2024 International Transport Workers’ Federation (ITF) congress. His presence was to underpin the importance the federal government attaches to the role of the transport workers in stabilizing the aviation sector.
Festus Keyamo as the Honourable Minister of Aviation and Aerospace Development is certainly the best thing that has happened to the industry. He has exhibited passion, dedication and selfless forthrightness in the discharge of his duties and a total comprehension of what it takes to carry out his roles. He is well-groomed for the job and his background has helped him greatly towards shaping the positive impact he is making on society.
Today, Festus has proved that a faithful, disciplined, and dedicated Nigerian can stand out of the crowd because he symbolizes what governance is all about. These feats can only be achieved by a man with the right comportment and conduct in the service of humanity and the fatherland.
Deserving of note is that Chief Keyamo, through the foresight of President Tinubu has well-prepared team leaders appointed as heads of the agencies of the Ministry.
The supportive and collaborative roles of the Nigeria College of Aviation Technology, Nigeria Metrological Agency, Nigeria Civil Aviation Authority, Nigeria Airspace Management, the Federal Airports Authority of Nigeria, and the Nigeria Safety Investigation Bureau (NSIB), have brought about those tangible and noticeable volte-face experienced today in the Aviation sector.
With Keyamo at the helm, Nigeria’s aviation sector is experiencing a transformative shift, thanks to President Tinubu’s foresight in appointing well-prepared team leaders. The Nigeria College of Aviation Technology, Nigeria Metrological Agency, and others are working together to bring about tangible change. Keyamo’s dedication, discipline, and commitment to service have improved Nigeria’s image and reformed the aviation and aerospace sectors.
Odoma is the President of New Nigeria Network [NNN[ writing from Abuja.
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