Cash Crunch Persists Despite N3.3trn In Circulation

The Central Bank of Nigeria (CBN) has again assured members of the public that it is addressing the reported cases of cash scarcity in some major cities across the country.

The apex bank said that currency in circulation as at December 11, 2023, stood at N3.4 trillion, well above the N1 trillion as at February 2023.

This is as the naira scarcity bites harder in different parts of the country leading to significant increase in charges by Point of Sale (POS) operators by as much as 500 per cent.

The CBN attributed the current situation to the hoarding of the Naira by some persons due to challenges experienced during the Naira redesign project.

The bank’s acting director in charge of corporate communications, Mrs Hakama Sidi Ali gave the latest assurance in a statement she issued yesterday in Abuja.

She said the CBN was monitoring the situation and had released sufficient cash to its branches across the country for onward distribution to Deposit Money Banks (DMBs).

Giving further clarification on the cases of hoarding, Sidi Ali explained that currency in circulation as of February 2023, was N1 trillion, while that figure had risen to over N3.4 trillion as of December 11, 2023. This, according to her indicated that there was sufficient cash in circulation, except that the cash was in the hands of individuals who were apprehensive due to their previous experiences.

Ali empathised with Nigerians, over their previous and current experiences, but insisted that the CBN had adequate cash to meet the day-to-day transaction needs of Nigerians. She, therefore, appealed to Nigerians to be patient while the CBN does the needful to ensure the availability of cash, particularly during the yuletide and beyond.

While also urging Nigerians to continue to accept all Naira banknotes for their daily transactions, Sidi Ali reiterated the Bank’s earlier call to the public to embrace alternative modes of payment, e-channels, to reduce pressure on the use of physical cash.