Home National ‘Cash crunch shameful, will undermine confidence in banking’, NLC warns FG

‘Cash crunch shameful, will undermine confidence in banking’, NLC warns FG

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The Nigeria Labour Congress (NLC) has warned that the current cash crunch in the country is not only shameful, undermining the confidence of the public in banking, but also creating another avenue for economic rentiers and their collaborators in the banks to fleece Nigerians.

The President of NLC, Joe Ajaero, said this on Tuesday in a statement titled “Cash Crunch: An incitement of Nigerians.”

The Union dismissed the claim by the Central Bank of Nigeria, CBN, that the cash crunch was due to hoarding.

“It is a fairy tale to continue brandishing cash hoarding as an excuse. Nigerians want their money, and it should be made available to them.

“Excuses are not what Nigerians want to hear but access to their money,” he said.

Ajaero said the NLC was deeply concerned about the recent cash crunch that had gripped the Nigerian economy, particularly as the nation approached the festive season, urging the Federal Government to urgently address the problem to prevent hardships for the citizens.

The NLC President noted that the cash crunch challenge has far-reaching implications for the citizens of the great nation.

“There is a need for urgent steps to be taken to address this issue to prevent further hardships for the already suffering Nigerian populace,” he said.

He, however, alleged that the last cash crunch earlier in the year was orchestrated by the ill-conceived and ill-implemented currency redesign policy of the immediate past.

He added that, the sorrow that botched the exercise foisted on the citizens was not what Nigerians wished to witness again in one year.

“Nigerians are spending more time in the banks trying to source for cash not for monies that are not in their accounts but for their own money.

“This is undermining confidence of the public in the banks and may discourage the citizenry from participating actively in banking.

“It is shameful that Nigerians would have to spend a lot of money to gain access to their hard-earned income.

“We are creating another avenue for economic rentiers such as the POS operators and their collaborators in the banks to fleece Nigerians,” he said.

The NLC president added that this was subjecting citizens again to spend their meagre salaries buying money, automatically devaluing their income.

He therefore said the NLC recognised the importance of a vibrant economy and believed that it was in the interest of the nation to ensure that the citizens would enjoy the festive season without undue financial strain.

“We call on the government to take immediate and decisive action to alleviate the cash crunch and mitigate its impact on the people.

“Government should therefore explore measures to inject liquidity into the economy, ensuring that there is sufficient cash flow to meet the demands of businesses and individuals.

“It is fairy tale to continue brandishing cash hoarding as an excuse. Nigerians want their money, and it should be made available to them.

“Excuses are not what Nigerians want to hear but access to their money,” he said.

Ajaero urged government to collaborate with other financial institutions to improve banking services,.

He said they should also ensure the availability of cash at ATMs and bank branches to facilitate easy access for the public.

(NAN)

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