Cash Crunch Looms In Calabar Ahead of Festivities
Anthony EKPO BASSEY
Residents and business owners in Calabar are expressing growing concern over a renewed scarcity of physical cash as the festive season approaches, raising fears of a repeat of the difficulties experienced during previous nationwide cash shortages.
In the past two weeks, long queues have resurfaced at several Automated Teller Machines (ATMs) across the metropolis, with many machines dispensing limited amounts or none at all. Some bank customers reported withdrawing as little as ₦5,000 per transaction, while others said they were turned away after machines ran out of cash by midday.
At major commercial hubs such as Watt Market, Marian Market and the MCC axis, traders say the situation is already affecting sales. Many customers who prefer cash transactions especially for small purchases, struggle to find enough currency notes, forcing some traders to accept transfers despite concerns over network failures and delayed alerts.
Lamenting the ordeals of traders and their customers, Ekaette Effiong, a foodstuff seller at Watt Market, said: “As we enter the festive period, cash circulation is supposed to increase but it has been different, since after the COVID-19 era. People come to buy items and complain they cannot find cash anywhere.”
Some Point of Sale (PoS) operators have begun raising withdrawal charges, citing difficulties in sourcing cash from banks. A ₦5,000 withdrawal now attracts charges as high as ₦300 in some parts of the city, compared with the usual ₦100 to ₦150. Operators say bank tellers often provide limited amounts, forcing them to queue repeatedly.
Over the past few years, banks have given varying explanations for the shortage. While some officials attributed the situation to increased demand ahead of Christmas, others hinted at slower cash disbursement from the Central Bank of Nigeria (CBN). Most branch managers declined to speak on record.
Commuters and transport operators are also feeling the impact. Several taxi drivers and commercial tricycle operators said passengers frequently resort to transfers for long distance routes, which sometimes fail, leading to arguments and delays.
Economists warn that if the scarcity persists, it could disrupt business activities during a period that traditionally records high commercial activity in Cross River State. They urged the CBN to intervene promptly to ensure adequate supply of currency notes.
Residents now fear that the scarcity may worsen as Calabar prepares to host its annual carnival, which attracts thousands of tourists and boosts local spending.
For now, the public continues to grapple with uncertainty as the festive season draws closer, hoping that authorities will address the situation before it escalates.
