The Central Bank of Nigeria (CBN) has reassured the public of an adequate currency stock to meet their needs, addressing concerns about naira scarcity. The CBN stated that the currency in circulation, which was N1 trillion as of February 2023, has increased to over N3.4 trillion as of December 11, 2023. While acknowledging reported cash scarcity in some major cities, the CBN spokesperson emphasized that the bank is actively addressing the situation, monitoring it closely, and releasing sufficient cash to its branches for distribution.
Key Points:
- The Central Bank of Nigeria (CBN) has issued a statement assuring the public of an adequate currency stock to meet their daily transaction needs.
- The currency in circulation, which was N1 trillion as of February 2023, has risen to over N3.4 trillion as of December 11, 2023, according to the CBN.
- The CBN acknowledges reported cash scarcity in some major cities but attributes it to individuals hoarding cash, possibly influenced by past experiences.
- The apex bank is actively addressing the reported cash scarcity and has released sufficient cash to its branches across the country for distribution to Deposit Money Banks (DMBs).
- The CBN spokesperson empathizes with Nigerians over their experiences with naira scarcity and urges patience as the bank works to resolve bottlenecks in the naira distribution chain.
- Bank customers are encouraged to accept all Naira banknotes for daily transactions, and the public is urged to embrace alternative modes of payment and e-channels to reduce reliance on physical cash.
Analysis: The Central Bank of Nigeria’s assurance of an adequate currency stock comes in response to concerns about naira scarcity in some parts of the country, with commercial banks reportedly rationing cash. The increase in currency in circulation from N1 trillion to over N3.4 trillion between February and December 2023 is highlighted to emphasize the availability of cash.
The CBN attributes the reported cash scarcity to hoarding by individuals, possibly influenced by past experiences. The central bank is actively addressing the situation by monitoring and releasing sufficient cash to its branches for distribution to Deposit Money Banks (DMBs). The statement aims to instill confidence in the public regarding the availability of cash for day-to-day transactions.
Emphasizing the need for patience, the CBN spokesperson acknowledges the challenges faced by Nigerians and reassures them of the central bank’s commitment to resolving bottlenecks in the naira distribution chain. The appeal for the acceptance of all Naira banknotes and the encouragement to embrace alternative payment methods align with broader efforts to promote digital transactions and reduce dependence on physical cash.
As the CBN addresses the reported cash scarcity, continued communication and transparency will be essential to manage public expectations and ensure confidence in the currency supply chain. Additionally, the promotion of alternative payment channels aligns with global trends toward digital and cashless transactions.