Total demand deposits fell by N210 billion between January and March 2023, as Nigerians made huge withdrawals from depository banks. Demand deposits fell from N20.12 trillion to N19.91 trillion in January 2023, according to data from the Central Bank of Nigeria.
The major setback was caused by CBN’s naira conversion policy, which led to a cash shortage in the country. The policy appears to have led to a lack of trust in the banking system, with Nigerians making large withdrawals and hoarding cash.
Third-party checks in excess of N100,000 are also not eligible for over-the-counter payments, although the existing N10 million check cashing limit on him remains in effect. CBN has urged banks to encourage customers to use alternative channels (internet banking, mobile banking apps, USSD, card/POS, eNaira, etc.).