Nigeria Banks Alleged To Have Gone Broke Over Election Spending?

Following the enormous withdrawal of money from Deposit Money Banks by politicians and their associates in preparation for the forthcoming general elections, emerging report has it that it has led to shortage of cash across bank branches in Nigeria.

Punch publication revealed on Thursday that several billions of naira had left the banking system between December last year and this month as different political parties spent huge amounts on their campaigns.

“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 Huge deposits running into several billions of naira have been withdrawn for election campaigns by politicians.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 disclosed.

It was also learnt that some lenders have had to postpone some obligations due to liquidity problems.

“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.

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