CBN Discloses Reason For Naira Scarcity

The Central Bank of Nigeria (CBN) has opened up on the reason for the naira scarcity across the nation.

The apex bank disclosed that some individuals are hoarding the currency.

Speaking to The Cable on Wednesday, the apex bank’s acting director, corporate communications, Sidi Ali said the situation was being addressed.

She said the CBN had released sufficient cash to its branches across the country for distribution to deposit money banks (DMBs).

“On the issue of cash not being sufficient, there is enough cash. CBN issued enough cash to the deposit money banks (DMBs),” she said.

Ali said, as of March 2023, the currency in circulation amounted to N1 trillion.

“But the figure has risen now because of the situation. We have pushed cash into circulation; we have given cash. As it is now, as at December 11, the currency in circulation is N3.4 trillion.

“So, you see, there is cash out there. And CBN is really giving to banks, except that most of this cash is in the hands of individuals. All these panic withdrawals, hoarding is ongoing

“That is why we are doing sensitisation, letting the public have confidence that this December 31 issue is no more. Let them bring out this cash so that they can do transactions. They can go to the banks, and the banks will deposit with the CBN,” she added.

Ali urged Nigerians to exercise patience as CBN is taking the necessary steps to guarantee cash availability, especially throughout the holiday season and beyond.