The Central Bank of Nigeria (CBN) has responded to the recent shortage of naira notes, shedding light on the causes behind the scarcity. This clarification comes in the wake of numerous complaints from bank customers across the country.
Bank customers voiced concerns about the scarcity of naira notes at various banking outlets, including counters, Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureaux de Change (BDCs). In response, the CBN’s Corporate Communications Department issued a statement attributing the apparent currency scarcity to substantial cash withdrawals by Deposit Money Banks (DMBs) from different CBN branches.
Panic withdrawals by customers further contributed to the observed scarcity, according to the CBN. Despite these challenges, the apex bank emphasized that there is no actual shortage of naira notes, asserting that an ample supply exists within the economy.
In their official statement, the CBN addressed the reported cash scarcity, stating, “Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs.”
Acknowledging the concerns raised by Nigerians about the availability of cash for financial transactions, the CBN assured the public of an adequate stock of currency notes for economic activities. The CBN branches across the country are actively working to ensure the smooth circulation of cash within their respective states of operation.
This situation follows the introduction of redesigned N200, N500, and N1,000 denominations in October 2022, with specified deadlines for the old notes of these denominations to cease as legal tender. Despite the initial deadline, the apex bank had previously announced its intention to extend the legal tender status deadline for the old design of N200, N500, and N1,000 denominations indefinitely.
As cash scarcity persists, affecting various regions including Lagos, Abuja, Kano, Katsina, Jigawa, and Adamawa, concerns have been raised about the impact on business transactions in local markets, particularly in the northern part of Nigeria where cash transactions are preferred over bank transfers. The situation has prompted the CBN to provide clarification and reassurance regarding the availability of currency notes in the country.
