The Central Bank of Nigeria (CBN) has identified the hoarding of banknotes by unspecified individuals as the cause of reported cash scarcity in major cities across the country. In response to the situation, the apex bank assured the public that it is actively working to resolve the issue.
Mrs. Hakama Sidi Ali, the Acting Director in charge of Corporate Communications at the CBN, addressed the matter during a conversation with newsmen in Abuja. She stated that the CBN is closely monitoring the situation and has already dispatched sufficient cash to its branches nationwide for distribution to Deposit Money Banks (DMBs).
Providing additional insights into the reported hoarding, she clarified that as of February 2023, the currency in circulation was recorded at N1 trillion. However, this figure has surged to over N3.4 trillion in the last two days. According to Ali, this surge indicates an ample cash supply from the CBN, but the funds are currently in the possession of individuals who may be hesitant due to past experiences.
Expressing empathy towards Nigerians for their concerns, both past and present, she emphasized that the CBN has an adequate cash reserve to meet the daily transaction needs of the populace. Ali urged Nigerians to exercise patience as the CBN takes necessary steps to ensure the availability of cash, especially during the upcoming yuletide season.
The Acting Director appealed to the public to accept all Naira banknotes for their daily transactions and reiterated the CBN’s earlier call for embracing alternative payment methods and electronic channels. This, she noted, would help alleviate pressure on the use of physical cash and contribute to a smoother transition in the current financial landscape.
