Reports have emerged of a shortage of naira in Illorin, Kwara State, as obtaining the new naira notes is proving difficult as old currencies are phased out.

Banks have expressed concerns about the limited cash being deposited by customers, which they believe is contributing to the scarcity.

This situation has had a negative impact on Point of Sales (PoS) operators and bank customers, who can only withdraw between N20,000 and N50,000, depending on the bank.

While N50,000 can be withdrawn over the counter at the bank, only N20,000 is allowed through ATMs.

Some PoS operators have increased their withdrawal fees, charging N100 for N5,000 or N150 depending on the location.

Efforts to contact relevant officials from commercial banks and the Central Bank of Nigeria (CBN) regarding the issue have been unsuccessful.

According to Daily Post, some PoS operators in Ilorin have expressed their concerns about the impact of this situation on their businesses.

Bosede Benjamin, a PoS operator on Kabba road, near the CBN in Ilorin, stated, “Since we are unable to collect enough cash from the banks, we look for legitimate alternatives to run our businesses.

“The banks have no clear explanations for us except to tell us that they don’t have enough cash.”

Isiaka Ismail, another PoS operator in the Maraba area of Ilorin metropolis, said, “We only collect between N10,000 and N20,000 from the banks as they also complain of cash scarcity.

“I have been forced to seek alternative sources with wealthy businessmen. When I buy N500,000 cash, I pay an interest of N5,000 to operate my business.

“I have however, refused to impose additional charges on withdrawals because I don’t want to compound the hardship of my customers.”

Taofeek Isiaka Lawal, who operates his PoS business in the Sango-Kulende area of the state capital, said the problem has continued for some weeks without concrete solution.

He stated that it has “seriously affected businesses, particularly as the festive season is around the corner”.