BraniacX:


A bank worker on this thread has all but admitted that banks are cash strapped while defending banks, the reason i think (I might be wrong though) is that liquidity has dropped drastically among banks due to this governments politicised knee jerk implementation of the TSA, banks can still cope of course but periods like this lay them bare for Nigerians to see their financial health which is not very good, all the ideas you suggested will have to be implemented of course but three major problems will dog it
1. Time which is a commodity Nigerians using the banking system can not spare a lot of to the finance industry and the government regulators to bring itself and themselves up to speed.
2. Enlightenment, the government should know that most rural communities don't have banks and neither do dwellers there have bank accounts and they account for at least 60% of the population, so should we mordernize and deny them access to a significant proportion of the nations e-commerce?
3. Our banking institutions themselves are barely afloat in terms of liquidity ever since the implementation of the T.S.A and many a politician have moved their funds abroad as have many companies (esp foreign ones). So if we're to operate a mainly cashless economy we will still need our unhealthy banks to guarantee and facilitate our transactions which in my opinion is in the absence of any forestalling intervention, a ticking time bomb

I haven't mentioned infrastructure like electricity, reliable telecoms network and coverage, prompt customer care hotlines to contact in cases of botched or undetermined transactions e.t.c but I'm sure you're getting a clearer picture of the challenges we face.

I have no answer for the short term apart from the government lending cash to banks (not printing cash to prevent further inflation) but the truth is that the government has to study its policies and its downstream effects before advocating and implementing them, this is my contribution.

Sir there is 'physical cash shortage'. This doesn't mean the money doesn't exist or has been spent

1wolex85:


You really don't need to throw insults. It's not necessary. Are you really saying there is no other way to access money apart from physical withdrawals? When you pay at a supermarket with your atm, have you not accessed your money? When you transfer to a customer via mobile money, have you not accessed your money? Shortage of physical cash is not and cannot prevent people from having access to their money in this 21st century.

WE REALLY KNOW YOUR TYPE,PROBABLY BECAUSE YOU ARE NOT IN NIGERIA RIGHT NOW TO EXPERIENCE THE HARDSHIP PEOPLE ARE GOING THROUGH.

1wolex85:


Of course I won't give cash I don't have. But the people who were able to collect cash earlier would reduce those at the atm. My point is not to eliminate atm

And when those people finish spending the cash, what next?

segunk1:


Bros leave the guy make e dey run mouth anyhow, go mention POS for one of those markets for ado-ekiti make dem use garri rubber flog your head. Why u no go buy ata-rodo, chilli pepper n onions for places like shoprite so that u go do online transaction pay.

Bia which bank you even dey work sef.

very funny true talk! i think it is down to illiteracy and ignorance

patchsk:


I think you're talking thrash.


How many people are banked in Nigeria?
And most importantly are you ignorant of the N100 fee on mobile transfers?

I buy pepper N50 and pay N100 commission.

Its really unnecessary to answer that type of fellow. I now understand how the word 'zombie' came about. Somebody will see black and still argue that it is white. Haba fah!

Let him meet better conductor wet go show him his teeth for hand.

BraniacX:


They do but they are not the majority of Nigerians! The majority of Nigerians swarming atm's in a period like this would actually lead to anarchy!
And if i don't have a bank account and i see people with accounts at atm queues wailing and lamenting their inability to access their money, what will make me want to open an account in the future?

See, all they need to do is to attach something important to owning a bank account. Lagos has been doing lassra registration for a couple of years, nobody do am, lake rice come out, those who wanted the rice had to do it. I am thinking of applying for lasg rent to Own scheme, guess one of the requirements? You guessed right, lassra card

BraniacX:


And when those people finish spending the cash, what next?

More people will come to the supermarket with cash, then I will have again to give. It's a cycle, I collect cash from some, give it to others while my account is credited with the corresponding amount and the risk of me taking large amounts to the bank is not there

1wolex85:

Sir there is 'physical cash shortage'. This doesn't mean the money doesn't exist or has been spent

The money does exist!
But it exists in the governments TSA account with the CBN
A role once played by many banks but now they only function as middlemen
Banks don't have access to that money so they can't withdraw it from the CBN to provide liquid cash for their numerous customers hence my suggestion that the government lend it to them!

floflo12:


WE REALLY KNOW YOUR TYPE,PROBABLY BECAUSE YOU ARE NOT IN NIGERIA RIGHT NOW TO EXPERIENCE THE HARDSHIP PEOPLE ARE GOING THROUGH.

I live in Festac in Lagos. I have only travelled to Ghana and Togo.

1wolex85:


I am not digging myself into anywhere. You are the one that has failed to see the opportunity but would rather see all the challenges. Again, I have not asked for total elimination of cash, I am saying there are people on those queues who should be encouraged to use other channels

The challenges are real

The opportunities remain hypothetical

Reality bites so we scream!

Understood?

1wolex85:


Sir, I tried my best not to be condescending to anyone, if I failed, I apologise.
To the issue, I am not stupid to believe we are very advanced no neither do I think you can totally eliminate cash, the crux of the matter here is reducing people at the ATM. That is why I blamed the central bank for not deepening their cashless policy this year. There are people on those queues who can do what they want to do with the cash through other channels but are not aware or are just skeptical. Mobile Money is not too complex for Nigeria, I don't believe that. Most of the queues were in urban areas. If we can deploy an atm system , we can deploy mobile money

You have tried so well brother give yourself a break.

tankara1010:


Afonja and warped reasoning when it doesn't suit them.

His reasoning is not warped and i am a neutral party, check my post on that thread! Racism against self is the worst kind indeed! You and your afonja friend should both be mad at the white animal that wrote that trash!

Knowledge9000:


Are you okay? I know you are an afonja. Didn't you see your fathers and mothers sitting on the ground INSIDE Ekiti bank to withdraw their money? What other ways to access your money if not through physical withdrawals and ATM? I don't know what is wrong with how you guys reason.

People can make payments for goods and services via alternate channels such as POS, Internet banking and mobile banking. You don't have to go to the bank to physically collect cash.

1wolex85:


Of course I won't give cash I don't have. But the people who were able to collect cash earlier would reduce those at the atm. My point is not to eliminate atm

Why would you not have cash overstocked when you know it is a time of heavy withdrawals? You would be no different from the ATMs. .... crowds would also be at your supermarket waiting. It's all about foresight and preparation. This is not the first year people been rushing ATMs.... the Banks know what tondo..m they just don't want to... think they been trying to let the FG be blamed.

Ogheni go and sleep.. How many bottle did you take? ⚡️

BraniacX:


You already admitted your bias as a bank worker!
Demand for cash has always been high at this period and a pro-active banking industry would have worked to forestall this bad scenario, did they? No!
The CBN has not been receiving cash deposits from banks and that's why they can't provide banks with cash to pay their customers creating the shortage you already admitted to but since the industry is still solvent, the question is, where is all the cash then?
A honest answer will lead you to the corridors of power in the country hence the reason we blame them!

1. As a worker in the industry, I know what you happening.
2. CBN don't have cash. Most of CBN's cash come from banks themselves. Banks have not been taking cash to CBN. CBN can't just print cash you know. That will lead to inflation.
3. The cash is in towns where there is no cash shortage. Not all towns have cash shortage. Even no all banks in the same town have cash shortage. For example First Bank ATM in Kaduna are paying while some banks in Kaduna are having issues.
4. Give an example of how you expect CBN to solve this problem?
5. Even when banks have cash, you can't just put it in the ATM. You have to sort the cash into ATM fit, teller fit and reject. Try sorting 10m cash and you will appreciate what bank workers go through for you.
6. If banks have been taking cash to CBN, they would have moved cash to where it is needed efficiently. Banks are doing this themselves at huge cost, but still th amount they can move is limited

1wolex85:


Yes sir I agree.

Good. Now consider: to withdraw N120k from my ATM to pay artisans, provisions seller, iya alata, etc, it costs me nothing ( if I use my bank's ATM) . But to use electronic banking, I would pay a commission of N105 per transaction .

Which option, cash versus electronic, do you think I would prefer for small transactions then?

Who then, masses or CBN, is guilty of not being serious about making Nigeria truly cashless?

More to the point of your question: how we avoid thia next year is to be much further along the cashless curve. That, contrary to your position, is primarily up to the CBN. I can propose any number of policy adjustments, but I need you to agree first:

CBN has not done enough to encourage - and is in fact, arguably discouraging - faster migtation to a cashless system. In the interim, Joe Citizen is entitled to his CBN-fixed N150k per day, and if the banks can't make that happen, they're failing their clients.

Chuksemi:


So if I want to buy Chicken for Christmas from the roadside seller, I will do mobile transfer?


For your information though. For a week now, diamond mobile banking app hasn't been working. You can't transfer with it.

Where you able to login sef?

1wolex85:

See, all they need to do is to attach something important to owning a bank account. Lagos has been doing lassra registration for a couple of years, nobody do am, lake rice come out, those who wanted the rice had to do it. I am thinking of applying for lasg rent to Own scheme, guess one of the requirements? You guessed right, lassra card

Might work in lagos state true, but what of all those market traders who have no reason to partake in any of these schemes who we need to buy from? So you just create a scheme to involve them? Right and you think the governments duplicity won't be smelled from a mile away? Remember these traders are informal and largely unregulated

pokipoki:

People can make payments for goods and services via alternate channels such as POS, Internet banking and mobile banking. You don't have to go to the bank to physically collect cash.

SOME PEOPLE JUST NEED THEIR CASH.

unmask:
you are the one with problem of reasoning.....some o e explained to you and you are still ranting.....smh.....to think he even turned it tribal

He doesn't understand the difference between one needing cash and payment transfers. Some people need to have their cash and you don't have to tell them how to access their funds.

1wolex85:


More people will come to the supermarket with cash, then I will have again to give. It's a cycle, I collect cash from some, give it to others while my account is credited with the corresponding amount and the risk of me taking large amounts to the bank is not there

In a cash scarcity people will come to a market that accepts cashless transactions with cash? Seems you're loosing the thread of this hypothetical scenario, the cash that was initially taken from the supermarket will be spent on those who don't accept cashless transactions so less and less actual cash will come in to the supermarket as time proceeds

greenermodels:
Guy, i paid cash to the bank and they don't even have a fraction of the cash for me to withdraw? thanks for telling us that most banks are in financial distress, i remembered that the head of the national deposit insurance commission said earlier this week that banks would need to capitalise to survive the recession. but who would buy bank shares when those that bought last time were badly burnt? Nigerian economy would crash starting from the banks, it's inevitable.

Your money is fine! Your bank is very capable of paying your money. No bank is presently in distress.
However, if we keep shouting about banks having problems, then surely trust in our banks will reduce and there will be be run on our banks and we will all suffer

PUSH1:


Layman's view.

Agbaya

I think there is literally war going on between Yoruba people and Igbo people on nairaland everyday the two best brain in Nigeria making selves slaves to northern Nigeria. if one region from the two best region in Nigeria goes to support northerns in power it will be in turn to oppress the other region and there no Jupiter that can bring the two in reconciliation. we should give it a rething if that is big to achieve we should separate one region from the other so that peace will reign.

mfm04622:


People like you should be invited to spend the holiday with DSS! Am sure your aim is to incite the public!

I work in the banking industry. There is shortage of cash. This is due to the fact that demand for cash is very high this time. The CBN also can't supply cash as banks have not been taking cash to CBN. The CBN act as bank to banks.

Did the CBN or others announced their is limit , the amount of money you have withdraw? No!

You just confirmed there is shortage of cash. Didn't they anticipate there will be shortage of cash to plan ahead of time? Did we witness any of these problems under GEJ?

mfm04622:


1. As a worker in the industry, I know what you happening.
2. CBN don't have cash. Most of CBN's cash come from banks themselves. Banks have not been taking cash to CBN. CBN can't just print cash you know. That will lead to inflation.
3. The cash is in towns where there is no cash shortage. Not all towns have cash shortage. Even no all banks in the same town have cash shortage. For example First Bank ATM in Kaduna are paying while some banks in Kaduna are having issues.
4. Give an example of how you expect CBN to solve this problem?
5. Even when banks have cash, you can't just put it in the ATM. You have to sort the cash into ATM fit, teller fit and reject. Try sorting 10m cash and you will appreciate what bank workers go through for you.
6. If banks have been taking cash to CBN, they would have moved cash to where it is needed efficiently. Banks are doing this themselves at huge cost, but still th amount they can move is limited

Thanks for enlightening me as you can observe, I'm not an industry insider.
So you mean to say if i understand you correctly, that the banking industry is still very much liquid but not all branches of all banks, and that the problem arises from moving cash from a branch were it is less needed to a branch where it is in higher demand

If so, shouldn't the industry have prepared for the cash rush during this season beforehand because i am sure they knew what to expect or is there something i am missing?

please note the following

1. the shortage of physical cash is deliberate

2. mobile apps of some banks are not working. that is also deliberate

3. non functioning of the ATMs is also deliberate

The federal government has directed the CBN to stop printing new naira notes for some time. the CBN has also reduced the amount it gives banks on a daily basis.
the queues at ATM will continue into the new year

Innomach:

Really? Well, I did a mobile transfer on the 22 and 23 December, the transactions failed due to reasons best known to them. Now my major problem is the money has been debited from my account but failed to get to the beneficiary. Now I am being asked to wait for forty eight working hours to investigate the transactions and get my money reversed. More troubling is that my creditors would have non of the excuses and plea. Where did I got it wrong?

I raised this issue with him

The banking system in Nigeria is passing through really bad times. ATM management should be giving to third party companies. No ATM inside UNIPORT has cash on Christmas day, before that the banks did not have cash.

This can lead to a popular uprising in a normal society but unfortunately Nigeria is so divided and abnormal.

BraniacX:


Thanks for enlightening me as you can observe, I'm not an industry insider.
So you mean to say if i understand you correctly, that the banking industry is still very much liquid but not all branches of all banks, and that the problem arises from moving cash from a branch were it is less needed to a branch where it is in higher demand

If so, shouldn't the industry have prepared for the cash rush during this season beforehand because i am sure they knew what to expect or is there something i am missing?

beautiful, someone is reasoning and asking the right question.
the answer = ask the Federal government why it mandated the CBN to restrict cash flow at this point.

1wolex85:


Yes sir you can buy all those things once you have the person's account number. Mobile Money will do the transfer for you and they will get alert and you take your foods except they don't have an account number. Please note I said it is true there is shortage of cash but it is wrong to say they blocked access to people's money. CBN has failed to enlighten the populace to take advantage of several e-channels available and note that there are mobile money Services where you don't need internet on your phone.

Oga sit down. Even the so-called banking apps are very unreliable. I have been unable to use my diamond bank app for close to a week now. The banking apps are horrible, ATMs are not dispensing cash, banking halls are crowded and yet you blame we the suffering masses for the bank's inability to discharge its duties. Abeg park well jor.