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Saturday, December 21, 2024

Yuletide: Hunger, high cost of fuel, Naira scarcity mar celebration

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There are strong indications that Nigerians may experience bleak Christmas celebration as the prevailing hunger, unabated cost of petrol price and scarcity of Naira Intensify.

AFRIPOST reports that skyrocketing prices of food items, high cost of transportation and exorbitant charges by Point of Sale (POS) Operators have significantly worsened the development.

As the annual Chritstmas celebrations come in few days, there is no conspicuous sign of relief and reprieve as residents keep wailing over the biting effects of the subsidy removal.

Naira scarcity continues as CBN sets daily withdrawal limit

As the scarcity of Naira pervades,The Central Bank of Nigeria (CBN) implemented a daily cash withdrawal limit of N100,000 per customer on point-of-sale (PoS) terminals, reinforcing its commitment to fostering a cashless economy.

The policy was detailed in a circular titled “Cash-out Limits for Agent Banking Transactions,” directed to Deposit Money Banks (DMBs), microfinance banks, mobile money operators, and super-agents.

Even as Christmas approaches, the CBN explained that the initiative aims to address operational challenges, curb fraud, and promote uniformity in banking operations.

Key directives in the circular include a weekly cash withdrawal limit of N500,000 per customer, regardless of the transaction channel.

Additionally, agent banking terminals must enforce a daily cash-out limit of N100,000 per customer, while the cumulative daily cash-out for agents must not exceed N1,200,000.

The CBN emphasized that agent banking services must remain distinct from merchant activities and instructed agents to apply the approved Agent Code 6010 for transactions.

Furthermore, agency banking transactions are to be conducted solely through designated float accounts maintained with the agents’ principals.

The circular also required agent terminals to connect to the Payment Terminal Service Aggregator (PTSA) and mandates the electronic submission of daily transaction data to the Nigerian Inter-Bank Settlement System (NIBSS) for onward reporting to the CBN.

The CBN warned that principals would be held fully accountable for their agents’ actions and any breaches of the directives would attract monetary or administrative sanctions. To ensure compliance, the bank announced plans for oversight activities, including unannounced configuration checks.

Cashless ATMs, cash rationing by banks

Meanwhile, checks uncovered that many banks have stopped regularly loading their ATMs with cash or, at best, load them only once a day.

Some ATMs are deliberately configured to dispense no more than N2,000 or N5,000 per transaction, leaving customers frustrated.

During a visit to a bank ATM in Ondo State last Friday, the machines were cashless.
Frustrated workers formed long queues, only to be met with error messages such as “unable to dispense cash” or “temporarily out of service.”

It was also learnt that another bank’s customers were observed receiving a maximum of N10,000, irrespective of the amount requested.

High cost of transport fares inhibit Nigerians from travelling

Despite the slight reduction in the price of petrol, transportation fares keep increasing as Christmas inches nearer.

In an interview with a Journalist, Afolabi Olu, he noted that Nigerians working far away from home might not travel to celebrate to the Christmas.

He noted that from Akungba to Abuja now costs ₦15,000, adding that the development may confine Nigerians to abstain vacation outside their abodes.

It would be recalled that the Dangote Petroleum Refinery reduced the price of Premium Motor Spirit (PMS) to below N900 per litre, offering Nigerians much-needed financial relief ahead of the festive season.

The privately-owned refinery, which previously lowered the price to N970 per litre on November 24, has now set the price at N899.50 per litre. This adjustment is aimed at reducing transportation costs during the holiday period.

In a statement issued by Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, the company also announced a special offer to further support consumers. As part of the initiative, customers can purchase an additional litre of fuel on credit for every litre bought with cash.

“To help alleviate transportation costs during this festive season, Dangote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at N899.50 per litre at our truck loading gantry or SPM. Additionally, for every litre purchased on a cash basis, consumers can buy another litre on credit, supported by a bank guarantee from Access Bank, First Bank, or Zenith Bank,” Chiejina stated.

However, Interviews by AFRIPOST revealed the concerns of residents over the rising prices of essential food items.

Adebose Titilayo, a local food vendor, shared that the cost of ingredients has escalated, particularly during the holiday season, but selling to customers remains necessary.

Olotu Oluwaseun, a wholesaler, also pointed out that price increases are expected during the festive period. She noted, “Food prices always rise at this time of year, but we’re compelled to sell at the prevailing rates. Many of the goods I sell are perishable, and if they aren’t sold promptly, they spoil.”

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