The Central Bank of Nigeria (CBN) has provided clarification on the recent shortage of naira notes in the country, addressing concerns raised by bank customers about the scarcity at various banking channels.
In an official statement from the Corporate Communications Department of the CBN, the apex bank attributed the apparent currency scarcity to substantial cash withdrawals by Deposit Money Banks (DMBs) from different CBN branches.
Additionally, panic withdrawals by bank customers at Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureaux de Change (BDCs) have contributed to the situation.
Contrary to the perceived shortage, the CBN emphasized that there is an ample supply of naira notes in the economy.
The statement assured the public that the branches of the CBN across the country are actively working to ensure the smooth circulation of cash in their respective operational states.
It is worth noting that the CBN had introduced redesigned N200, N500, and N1,000 denominations in October 2022, with set deadlines for the discontinuation of the old notes as legal tender.
However, last November, the apex bank expressed its intention to extend the legal tender status deadline for the old design of N200, N500, and N1,000 denominations indefinitely.
Reports indicate that naira scarcity has become more pronounced across the country, affecting cash withdrawals in banks and impacting business transactions in local markets.
Residents in various cities, including Lagos, Abuja, Kano, Katsina, Jigawa, and Adamawa, have expressed concerns about limited cash availability in banks, raising fears reminiscent of past naira scarcity episodes.
This situation has particularly impacted regions like northern Nigeria, where cash transactions are preferred over bank transfers.
The scarcity has been linked to the approaching December 31 deadline for the use of the old N200, N500, and N1,000 banknotes, as reported by Daily Trust on November 1. The CBN’s explanation attributes the scarcity to the significant withdrawals by DMBs and panic withdrawals by customers at ATMs.
