Naira scarcity caused by POS operators, CBN discloses as RIVPA visits Port Harcourt Branch

Naira scarcity in commercial banks have been attributed to activities of Point of Sale, POS, operators, who withdraw massive amount of money to stockpile for their businesses leading to the artificial scarcity of the naira notes.

The acting Branch Coordinator, Central Bank of Nigeria, CBN, Rivers State Branch, Mr. Ibiso Tom-George, made the clarification while playing host to members of Independent Newspaper Publishers Association of Rivers State, RIVPA.

Tom-George, who represented the Branch Coordinator, Engr. Kelechi C. Onuoha, said POS operators have gone against the main reason behind their operations which is the provision of banking services to people in rural or remote communities where there are no commercial banks, to rather do business in urban areas, thereby putting a strain on the supply of the Nigerian currency.

Tom George, stressed that Commercial banks are sufficiently funded by the CBN but individuals have reportedly stacked these currencies in their homes, leading to very high amount of money in circulation.

Reacting to a question on how to get new notes in exchange for mutilated ones, Tom George said, people can access new notes directly from their Branch in the State, with little or no hurdles.

In response to an earlier speech made by the leader of the RIVPA delegation, Gloria Boma Harry, he said on the Issue of banks not accepting Public notices made by indigenously owned newspapers, the CBN did not give such directives to commercial banks but they would appeal to banks particularly those operating in the State to accept such notices and advised the association on ways to address the issue.

On collaborations and empowerment, Tom George advised that the request should be sent through the proper channels for possible action.

Earlier in her address, Harry said: The State Executive Council of Independent Newspaper Publishers Association, RIVPA, and all her members are thankful to you for granting our request to meet with you despite the short notice. We are grateful Sir.

We are here to have a robust discussion with your organisation, mindful of the key roles you play in formulating economic policies that shapen the ways businesses are conducted in Nigeria.

Sequel to this key roles CBN play in the business community, we as members of the fourth estate of the realm are here to foster a working relationship with the CBN, through the Port Harcourt office, knowing that most of our concerns apply to our colleagues in other regions of the Country, and a review of such policies will enhance the economic fortunes of Publishers who apart from being channels of information gathering and dissemination, are also business men and women.

Sir, we want to bring to your notice a major challenge publishers are faced with, particularly those doing business in Rivers State, which is the rejection of Change of name, reconciliation of name and any public notice made by newspapers published in the State.

Banks have consistently rejected these publications made by newspapers owned by members of this association and this has caused us great losses.

Cost of doing business in Nigeria has become unbearable, especially for small and medium scales businesses and this is worse for newspaper publishers whose source of income is tied to publications and advertorials.

Sir, we want to solicit that you use your good office to mandate banks to accept public notices made by members of RIVPA, because we are duly registered and have our ISSN numbers just like the national dailies.

Secondly, we want to solicit for the inclusion of RIVPA members in any empowerment scheme or grants by CBN.

This request is due to the current high cost of doing business, particularly because our line of business does not have goods that are purchased and resold but we are saddled with the responsibility of being the mirror of society, which in most cases we do at a loss.

We also employ manpower and these individuals depend on us for their source of livelihoods.

As business owners we are constantly bothered about increasing our assets and reducing liability by positively impacting on our bottom lines.

We want to commend you for the achievements recorded by the Port Harcourt Branch of CBN under your leadership.

Thank you for your attention and God bless.