Nigerian banks are reportedly experiencing a cash shortage following massive spending by various political parties in the country on election campaigns, Punch reports.
“Many banks are having it rough in terms of liquidity. Huge deposits running into several billions of naira have been withdrawn for election campaigns by politicians. This has affected some of the banks. So, liquidity issue is of utmost concern right now,” a top official of a tier one bank says.
“Banks have been calling and pleading with some investors not to terminate maturing fixed-income debts as a result of liquidity problems; some bankers are also not lending not necessarily because of uncertainties in the economy, but due to lack of liquidity,” a banker added.
A number of politicians, he said, had also sold their properties below the real values in a bid to raising funds for campaigns.
As a result, hundreds of customers dashed to banks to withdraw money from their accounts more in anticipation of problems during and after the presidential election on Saturday.