The cash scarcity has escalated into a serious crisis, prompting the organised private sector to warn that the economy is grinding to a halt. Representatives of the Lagos Chamber of Commerce and Industry, the Nigerian Employers Consultative Forum, the Nigerian Economic Summit Group, the Nigerian Association of Small and Medium Enterprises, and the Nigerian Association of Small‑Scale Industrialists all gave separate interviews on Monday. Their concerns were underscored by fresh violence in Ogun State, where two banks were set ablaze and the Sagamu local government council secretariat was destroyed.
Wale Oyerinde, Director‑General of the Nigeria Employers Consultative Association, described how the cash squeeze has disrupted transactions and strained MSMEs, the informal sector, and un‑banked rural populations. “The online banking portals and mobile infrastructure continue to fail, causing further hardship to businesses and Nigerians,” he said. While the release of N200 notes may provide some relief, Oyerinde warned that the damage will need to be reversed gradually.
A report from the Nigerian Economic Summit Group (NESG) echoed these concerns, noting that the naira redesign policy has sharply reduced the volume and value of cash in circulation. The cash crunch has hit households, informal businesses, and especially Nano, Micro, Small and Medium Enterprises—the backbone of the private‑sector‑driven economy. Long queues at banks, failed withdrawals, and the inability to pay for daily needs have become commonplace, while deposit‑money banks appear unprepared for the sudden shift to new notes or a cashless system.
Idahosa, Deputy President of the Lagos Chamber of Commerce, warned that first‑quarter GDP will suffer as businesses cannot operate optimally due to the naira shortage, which has also depressed consumer spending. He blamed political actors hoarding currency for upcoming elections, stating that once the election‑related demand subsides, the money will re‑enter circulation. “Even if only N300 billion of new notes were printed, we would not face the crisis we have now if those notes were circulating,” he added.
Dr. Adams Adebayo, Chairman of the Nigerian Association of Small and Medium Enterprises, Lagos State Chapter, called the crisis “uncalled for” and said SMEs are the worst hit by the Central Bank’s unpopular policy. Prices have risen, and the ease of doing business has deteriorated. He urged the federal government to look beyond the politics of the naira redesign and address the damaging effects on the formal and informal value chains, which handle over N5 billion in daily cash transactions.
Seun Kuti‑George, Vice‑President of the Nigerian Association of Small‑Scale Industrialists, acknowledged the harm but argued the economy would not be destroyed. Meanwhile, Dr. Uju Ogubunka, President of the Bank Customers Association of Nigeria, lamented that customers cannot purchase cash‑only goods, even for modest transfers.
In Lagos, many residents were stranded as commercial banks failed to dispense cash. Branches along the Okota‑Ire‑Akari axis in Isolo were closed or only partially operational, with ATMs out of service and long queues forming. Customers reported being unable to deposit old N500 and N1,000 notes, and several banks—including Sterling, Fidelity, and Ecobank—refused cash withdrawals. Similar disruptions were observed in Old Ojo, Mazamaza, and Festac, where banks either closed or only accepted old notes with a CBN‑generated code. Tensions rose at Polaris Bank, where a near‑fight broke out over queue priority, and many ATMs remained non‑functional.
In the Federal Capital Territory, most ATMs were dormant, and Deposit Money Banks could not meet client demands, severely affecting small businesses. In Kubwa, ATMs of major banks were offline, and customers waited for hours with only limited cash disbursements—often capped at N5,000 to N10,000. Bank officials blamed insufficient cash allocations from the apex bank.
Similar cash shortages plagued Ilorin, Kwara State, where many banks either did not open or limited over‑the‑counter withdrawals to N3,000. In Anambra State, a sit‑at‑home exercise left residents unable to purchase goods, as banks and POS operators remained closed and ATMs failed to dispense cash. Onitsha and Nnewi residents reported empty ATMs and halted POS services, leaving people unable to buy foodstuffs.
Kano also experienced widespread cash unavailability, with ATMs non‑functional and banking halls crowded with desperate customers. The violence in Sagamu was triggered by alleged refusal of banks to open, compounded by ATMs that had stopped dispensing cash for a week. Protesters blocked the Sagamu‑Benin Expressway, invaded the local government secretariat, stole the council mace, and razed Keystone Bank and Union Bank branches. Council Chairman Afolabi Odulate confirmed the invasion but said no one was injured and that police and soldiers have restored order, arresting 27 suspects.
The unrest follows President Muhammadu Buhari’s directive allowing old N200 notes to coexist with new ones until April 10, while N500 and N1,000 notes remain invalid—a move that contravenes a Supreme Court order to suspend the February 10 deadline for note exchange. Governors of Kaduna, Ogun, and Sokoto insist that old notes remain legal tender until the Court’s final ruling. The APC’s National Working Committee has urged the CBN and Attorney‑General to comply with the Court’s order.
Oba Babatunde Ajayi, the Akarigbo of Remo, appealed for calm, emphasizing that the cash policy is a federal matter and urging people to continue accepting old notes per the Supreme Court ruling. He pledged that no one would lose out for holding old notes and instructed market traders to accept them.
Political blame for the Sagamu violence has been exchanged. The Ogun State government, via Chief Press Secretary Kunle Somorin, accused the PDP of orchestrating the protest in retaliation for an APC rally’s success. Somorin warned that the governor would pursue all responsible parties. PDP candidate Bola Oluwole denied involvement, claiming the APC is attempting to smear him as elections approach and urging the government to address the underlying economic hardships rather than shift blame.
Overall, the cash scarcity and ensuing unrest have highlighted deep systemic weaknesses in Nigeria’s monetary policy, banking infrastructure, and political landscape, with severe repercussions for businesses and ordinary citizens alike.
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