CBN Attributes Naira Scarcity to Hoarding, Reports N3.4 Trillion in Circulation

The Central Bank of Nigeria (CBN) says it is addressing the reported cases of cash scarcity in some parts of the country.

Speaking in a press conference on Wednesday, Sidi Ali, the apex bank’s acting director, corporate communications, attributed the current situation to the hoarding of the currency by some individuals.

She said the CBN had released sufficient cash to its branches across the country for distribution to deposit money banks (DMBs).

On the issue of cash not being sufficient, there is enough cash. CBN issued enough cash to the deposit money banks (DMBs).

Ali said as of March 2023, the currency in circulation amounted to N1 trillion.

But the figure has risen now because of the situation. We have pushed cash into circulation; we have given cash. As it is now, as at December 11, the currency in circulation is N3.4 trillion.

So, you see, there is cash out there. And CBN is really giving to banks, except that most of this cash is in the hands of individuals. All these panic withdrawals, hoarding is ongoing.

That is why we are doing sensitisation, letting the public have confidence that this December 31 issue is no more. Let them bring out this cash so that they can do transactions. They can go to the banks, and the banks will deposit with the CBN.

Ali said Nigerians should exercise patience as CBN takes necessary steps to guarantee cash availability, especially throughout the holiday season and beyond.

Last month, the apex bank said there is sufficient cash for economic activities after reports of scarcity in some locations.

The bank also cautioned citizens against panic withdrawals, saying there is sufficient stock of currency notes for transactions in the country.