Customers Face Hardships Amid Allegations of Profit-Driven Policies
ABAKALIKI—Banks in Ebonyi State have come under fire for allegedly hoarding cash during the festive season, a practice that has left many customers stranded and struggling to access funds. Investigations have revealed that customers, particularly those from rural areas, are finding it increasingly difficult to withdraw money for both business and festive purposes.
Reports indicate that banks are imposing strict withdrawal limits, allowing customers to withdraw as little as N5,000 from ATMs and up to N20,000 from bank counters. This has created significant frustration among residents who rely on cash for their daily transactions, particularly during the economically demanding yuletide period.
Customers’ Struggles Amplify Economic Woes
Mrs. Rose Nworie, a foodstuff trader, shared her ordeal with the cash withdrawal limitations. “I came to this bank with the intention of withdrawing over N500,000, but they told me there was no money and could only give me N20,000 inside the bank,” she lamented. “At another bank, they offered me only N10,000. I need this money to buy foodstuffs in the villages, but they only accept cash—no bank transfers.”
Nworie’s experience highlights a broader issue affecting rural traders and businesses, which predominantly operate on cash transactions. The inability to access sufficient funds is crippling local commerce and intensifying financial difficulties for many in Ebonyi State.
Allegations of Collusion With POS Operators
Chief Mrs. Nneka Itumo, Chairperson of the Ebonyi State Market Women’s Association, has accused banks of colluding with Point of Sale (POS) operators to hoard cash and maximize profits. “Bank transactions have effectively shifted to POS operators in Abakaliki and its surrounding areas,” she stated. “It’s nearly impossible to withdraw more than N100,000 at once from any bank in the capital or nearby communities.”
According to Itumo, banks are allegedly redirecting large sums of money to POS agents in exchange for hefty commissions. This practice, she said, is exacerbating the economic hardships faced by residents, particularly traders who now find themselves forced to rely on POS operators for quicker, albeit more expensive, cash transactions.
Economic Impact of the Alleged Practices
The alleged cash hoarding and redirection to POS operators have caused widespread economic disruptions. Traders and small business owners, who rely on cash to procure goods and services, are particularly hard hit. As a result, customers are forced to pay higher fees to access their own money, deepening the economic struggles already prevalent in the state.
The situation is particularly dire in rural areas, where bank branches are sparse and POS agents dominate financial transactions. The increased dependency on POS operators has created a parallel financial ecosystem where cash is prioritized, often at the expense of fair pricing and accessibility.
Call for Government Intervention
Chief Mrs. Itumo has called for immediate government intervention to address the alleged cash hoarding practices. “This trend is worsening the economic hardships faced by the public, especially as traders now prefer dealing with POS operators who offer quicker transactions than banks,” she stated. “The banks are hoarding cash, as they did last year, while POS operators continue to profit at the expense of customers.”
She urged regulatory authorities to investigate the matter thoroughly and ensure that banks prioritize their customers’ needs rather than exploit the seasonal demand for cash. “The government must step in to ensure accountability and protect citizens from these predatory practices,” Itumo emphasized.
Broader Implications for the Financial Sector
The allegations of cash hoarding and collusion raise serious concerns about the transparency and efficiency of the banking sector in Nigeria. Such practices, if left unchecked, could erode public trust in formal financial institutions and drive more people toward informal and less regulated financial systems.
To restore confidence, financial regulators need to enforce stricter oversight and penalties for banks found engaging in exploitative behaviors. Additionally, efforts must be made to enhance digital banking infrastructure and encourage wider adoption of cashless payment systems to reduce reliance on physical cash.
Conclusion
The yuletide season is a time when businesses and individuals rely heavily on access to cash, and the alleged actions of banks in Ebonyi State have created significant hardships for many. While investigations into the matter are necessary, immediate measures must be taken to alleviate the challenges faced by customers. A coordinated effort involving banks, regulatory authorities, and the government is essential to ensure fair and equitable access to financial services for all citizens.
