Ondo Election: Reasons Cash Shortage Hits Ondo as Banks Struggle to Meet Customer Demand
By Peter Dada
As Ondo State prepares for its governorship election, residents are facing a severe cash crunch, with commercial banks across the state running low on funds. Customers have reported difficulties withdrawing money, with some only able to access a fraction of the amount they requested.
Sources inside the banking sector have revealed that a significant portion of the available cash is being withdrawn by politicians, who are stockpiling funds for vote-buying activities ahead of the election. It is alleged that bank managers are complicit in these withdrawals, allowing politicians to take out millions of naira in large sums.
One insider from a new-generation bank shared that, over the past week, political figures, especially from the ruling All Progressives Congress (APC) and the opposition Peoples Democratic Party (PDP), have been coordinating with bank staff to withdraw vast amounts of money for campaign logistics and, more troublingly, for use in vote-buying. This has left the banks with little cash to distribute to ordinary customers.
“As the politicians withdraw money, especially with the help of bank managers, there’s very little cash left in the branches for other customers. This is why people are now finding it difficult to withdraw substantial amounts of money,” the source said. “Politicians are taking out millions of naira, and the rest of us are left with just a few thousand naira to withdraw.”
Several bank customers have shared their frustration with Sunday PUNCH, describing how they were unable to withdraw the amounts they needed. One customer, Tunde, expressed his disappointment after attempting to withdraw N50,000 from a bank in Akure, only to be told he could only access N2,000. He was then directed to a Point-of-Sale (PoS) terminal for the rest of his transaction.
“I went to the bank on Thursday to withdraw N50,000, but the teller told me they had no cash and could only give me N2,000. They suggested I go to a PoS machine for the rest of the money. This situation has been frustrating, especially with the election around the corner,” he said.
Another customer revealed a similar experience, recounting that he was only given N10,000 after requesting N30,000. “I was told that there was simply no more cash available at the bank,” he said, adding that he had been advised to use PoS for the remaining amount.
A manager at one of the commercial banks, who spoke on the condition of anonymity, confirmed that the cash shortage was linked to the withdrawals by politicians. He explained that banks are currently receiving fewer funds from the Central Bank of Nigeria (CBN) due to new restrictions, and politicians are depleting what little cash is available.
“The CBN now only provides us with cash twice a week, compared to before when we could withdraw from them multiple times a week. With politicians withdrawing huge sums, we are unable to meet the demand of regular customers,” the bank manager explained.
It was further alleged that both the APC and PDP have been heavily involved in these withdrawals, with each party allegedly preparing for vote-buying during the upcoming election. A source claimed that some banks were losing as much as N200 million to N300 million a week to these withdrawals.
Responding to the allegations, the Publicity Secretary of the PDP, Mr. Kennedy Peretei, denied that the party was involved in vote-buying, insisting that the popularity of their candidate, Agboola Ajayi, would be enough to secure victory. “The PDP does not need to buy votes to win this election. Our candidate’s track record speaks for itself,” Peretei said.
On the other hand, the APC also denied the accusations. Mr. Steve Otaloro, the party’s Director of Media and Publicity, dismissed the claims as an attempt to tarnish the APC’s image. He stressed that the APC was committed to a free and fair election and would not engage in vote-buying. “We challenge anyone who has evidence of these allegations to present it. Until then, we consider these accusations as baseless and politically motivated,” Otaloro stated.
As the election draws near, the cash crisis in Ondo State remains a key issue, with many residents expressing concern that the ongoing shortage is being exploited for political gain.
