The persistent scarcity of naira has led several banks to shut branches amid rising customer attacks, according to recent findings. This development followed a warning from the Lagos State Police Command that some groups were planning violence in the state because of the currency shortage. Observers noted that banks have begun allowing non‑essential employees to work from home.
Zenith Bank, for example, has closed branches in Lagos State out of fear of angry customers. Our correspondents saw closures in Ikeja, Ikorodu and Agege on Tuesday, with some locations shutting earlier. Since the naira redesign policy was introduced, banks have borne the brunt of public frustration. Videos circulating on social media show individuals climbing counters, stripping, and venting anger in banking halls. As the February 10 deadline for the new notes approaches, Nigerians struggle to obtain the currency, prompting attacks on banks in states such as Edo and Oyo, where protests have turned into riots. In Ibadan, a Wema Bank branch was vandalised during weekend unrest, leading to heightened security and caution across the sector.
Amid the heightened tension, several commercial banks directed certain branches to cease operations until further notice. Our correspondent found that some Lagos branches lacking cash were ordered to shut down to prevent violent reactions from frustrated customers who have begun taking the law into their own hands. A senior, unnamed official at Sterling Bank confirmed that branches in the Lekki area were closed on Tuesday. “They opened but were asked to shut down. All branches without cash were asked to shut down. Non‑essential staff have been ordered to resume remote work,” the source said, adding that the closures were necessary because customers, misled by media reports of EFCC arrests of bank managers for hoarding cash, now blame banks for the naira scarcity. The source described scenes of customers arriving with canes, intent on assaulting staff.
Sterling Bank later issued an emailed response stating that no memo ordered staff to work from home and that all branches and offices remain open and fully operational. Non‑essential staff may use the existing hybrid work policy due to concerns about an imminent petroleum workers’ strike, while essential staff are on‑premises. The bank noted commuting challenges caused by petrol scarcity and growing unrest, assuring that all locations are staffed and monitoring the situation for safety.
Similarly, First Bank Nigeria instructed some branches not to open until further notice. A source confirmed that vulnerable branches were closed to avoid violent demonstrations, and cash‑starved locations were also shut. A memo titled “Temporary Closure of our LASPOTECH branch, Lagos State” instructed the branch to remain closed on Tuesday, 7 February 2023. In Ojodu Berger and Isheri Road, banks halted operations on Tuesday due to the ongoing cash crunch. Zenith Bank opposite Ojodu Mall barred customers from entering, while Guaranty Trust Bank on Bashiru Street was shut and its ATMs non‑functional. Access Bank opposite Oremeta Street allowed entry but offered no over‑the‑counter payments. At the same street, Union Bank permitted entry but limited withdrawals to N3,000 over the counter; the neighboring First Bank was closed, though its ATMs were still usable. United Bank for Africa on Isheri Road was open but not paying customers, and all its ATMs were out of service. Stanbic IBTC Bank on Isheri Road was closed when visited, although security operatives claimed it had opened earlier.
Days after the Central Bank of Nigeria directed commercial banks to dispense a maximum of N20,000 in new notes over the counter, many banks still lacked sufficient cash. Visits to banks along the Ikotun, Akowonjo and Egbeda axis revealed that some were paying only N2,000 OTC. A Fidelity Bank on Egbeda Road paid just N2,000, and its ATM dispensed no cash. When asked why the limit was so low, a staff member explained, “There is no money to pay. We paid N5,000 yesterday because we had money. Now the money has finished, so we are paying N2,000 OTC. If we have more money, we will pay more.” Standard Chartered on Akowonjo Road also paid only N2,000 OTC. At Polaris Bank, a staff member said, “We have stopped paying; there is no money anywhere. We paid earlier today, but now we can’t pay again. Even OTC payments have stopped.” Most banks along the Ikotun axis were not paying at the time of the report.
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