Residents of Enugu, the capital of Enugu, are battling with an unexplained cash shortage, EQ has gathered.

Speaking with EQ on Saturday, the residents stated that the scarcity peaked in October. They said it happened during the core software migration of Zenith Bank, a commercial bank.

Blessing Lucy, one of the residents, said banks in the state now allow residents to only withdraw N10,000 per transaction. She said she first thought it was a nationwide scarcity issue until she recently learnt it was peculiar to the state.

“I thought it was a nationwide issue and that it started about a month ago, at the end of October. I remember going to the bank during that period Zenith Bank was having issues, and after they resolved them, I visited the bank again only to be told that I could not get more than N10,000 cash,” Lucy told EQ.

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“So, even if you wanted to withdraw N500,000 or N1 million, the banks can only provide N10,000 per transaction.”

She said the issue she thought began with Zenith Bank was soon to spread to other banking institutions in the state. And they now pay N300 for every N10,000 PoS withdrawal unlike the N200 charge fee common across the country.

“I didn’t think it was peculiar to Enugu State, I thought it was a nationwide issue. But it’s true, and it’s not funny. Just the other day, I withdrew N10,000, and the charge was N300.

“The cash is even if you find a PoS operator with cash, most of them do not have cash. Just two days ago I went to the bank to withdraw and the cashier said as usual that they could only pay N10,000.

“When people complained, he advised them to use PoS. Imagine banks advising customers to use PoS. So where are PoS vendors getting the money they’re selling from. There is no money in ATMs anymore, the queues inside the banks are sickening.”

Victor Ojukwu, an undergraduate, told EQ on Sunday that he experienced the scarcity firsthand on Sunday morning after he visited ATM stands to withdraw cash and they wouldn’t dispense.

He said while he was aware of the scarcity, he didn’t understand the magnitude. He explained that most residents now rely on PoS operators who have also now hiked their charges.

“There is currently a cash scarcity in Enugu. I experienced it for the first time today, although my friends have been dealing with it through PoS transactions rather than ATMs,” Ojukwu told EQ.

“However, PoS agents often direct you to ATMs, which only dispense N5,000 or N10,000 per day. For instance, my friend’s mother wanted to withdraw N300,000 and was charged N9,000 for the transaction.

“Today, I needed N3,000 to buy some foodstuffs, but I was charged N200 for the withdrawal. Previously, the charges were N100 for every N5,000, and N200 for amounts above N5,000.

“Now, the charges have increased; withdrawals between N2,000 and N5,000 attract a fee of N200, while amounts between N5,001 and N10,000 are charged N300.

“I had heard about this issue before, but it never really affected me, until today when I experienced it firsthand.”

Coal City Connect, an X account, also corroborated this claim on Thursday, noting that banks have now enforced stricter withdrawal policies

Enugu State is currently grappling with a severe cash shortage that has left residents struggling to access money. In an unprecedented turn, ATMs across the state are no longer dispensing cash, while banks have imposed stricter cash withdrawal limits, / pic.twitter.com/JJPAxeOHwu— COALCITY CONNECT (@Coal__City) November 14, 2024

“Enugu State is currently grappling with a severe cash shortage that has left residents struggling to access money,” Coal City said.

“In an unprecedented turn, ATMs across the state are no longer dispensing cash, while banks have imposed stricter cash withdrawal limits exacerbating the financial strain on individuals and businesses alike.

“The crisis has also driven PoS operators to hike their service charges, with some reportedly doubling their fees overnight.”

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