Plateau State is facing a severe cash scarcity, leaving many residents grappling with limited access to cash for everyday transactions. For several days, there has been difficulty in withdrawing money, with Point of Sale (PoS) agents reporting that accessing funds from banks has become increasingly challenging.
As a result, withdrawal charges have surged, further compounding the frustration of customers.
POS agents in Jos have therefore voiced their concerns, explaining that they are finding it harder than ever to obtain cash from financial institutions. Many of the agents who spoke to BusinessDay on Sunday in Jos reported that what used to be a withdrawal charge of between 100 and 200 naira per 10,000 naira transaction has now skyrocketed to between 400 and 500 naira. This increase has made the already challenging process of withdrawing money even more costly for residents.
BusinessDay visited several markets in Jos, including Farin Gada Market in Jos North, where the situation was equally dire. Most PoS operators in the area were either out of cash or had very limited amounts, with some agents reporting as little as N20,000 available for withdrawals. Similar scenes were witnessed in Bukuru and Taminus markets, where cash availability was scarce, leaving both vendors and customers in a state of uncertainty.
At these markets, buyers and sellers alike shared their frustrations over the ongoing cash shortage. Some sellers reported having to turn away customers due to the inability to accept electronic payments, while others lamented the increased withdrawal fees.
The shortage has led to slower transactions and, in some cases, a total halt in business, as people are unable to access cash for purchases or sales.
Traders in both large and small markets noted that the scarcity of cash is particularly hurting those who rely on cash transactions for their day-to-day operations.
“We cannot do business like this, customers don’t have cash, and we don’t have cash to give them. Even when we try to access money from POS agents, they either don’t have enough or the charges are too high”, Amina Muhammad, an onions seller at Farin Gada market lamented.
The shortage of cash has also made it more difficult for individuals to make urgent purchases. Roadside shops, which typically cater to small-scale buyers, have reported a decline in sales, with many customers opting not to make purchases at all.
Read also: POS operators grapple with skyrocketing paper expenses in Plateau
“People prefer to wait and see if they can get money through other means, but for now, we are just waiting for the situation to improve,” said Chukwu Emeka, a shopkeeper at a roadside kiosk in Jos.
Despite the challenges, some POS agents are attempting to keep their businesses afloat by working with limited resources, although the increased withdrawal charges are putting a strain on their operations.
“It’s not easy for us either. We are stuck between not having enough cash to serve our customers and the high charges imposed by the banks. It’s a tough situation for everyone”, said a POS operator who simply gave his name as Abdul.
The situation has left many residents of Plateau in a state of limbo, unsure of when the cash shortage will end or if it will worsen in the coming days. As frustration grows, it remains to be seen whether the government or financial institutions will take immediate action to resolve the issue and alleviate the burden on businesses and customers alike.
In a telephone interview, with BusinessDay on Sunday in Jos, Musa Sule, the Commissioner for Commerce in Plateau State, clarified the ongoing scarcity of cash in the state, attributing it to federal government cashless policy.
According to Sule, the federal government is working closely with state governors to implement the policy, which according to him will curb criminal activities and promote economic stability. He further noted that local government chairmen will also be involved in ensuring the success of the initiative across the country.
Sule emphasised that the cashless policy is a strategic move that will reduce criminality and enhance the effectiveness of security measures in Nigeria. By limiting the circulation of large sums of cash, the policy is intended to create a more transparent and accountable financial system.
However, the commissioner acknowledged the challenges that come with such a policy, especially in rural areas where access to banking services and digital platforms is limited. He pointed out that people in remote regions, particularly in the far northern parts of Nigeria, may face difficulties due to the lack of smartphones and access to digital financial services.
To address these concerns, Sule called for a massive public awareness campaign aimed at educating Nigerians about the new policy and its benefits. He stressed the importance of informing the public, especially in rural communities, to ensure that they are not left behind in the transition to a cashless society.
“The people in these areas need more awareness and assistance in adapting to the new system,” he said.
The commissioner also urged the government to increase the provision of amenities in rural areas, ensuring that citizens have the necessary infrastructure and tools to navigate the changes. With the right support and information, he believes that the policy can ultimately lead to greater economic and social stability across Nigeria.
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