With the growing concerns over cash scarcity in several major cities across Nigeria, the Central Bank of Nigeria (CBN) has identified the root cause as the hoarding of banknotes by undisclosed individuals.
The apex bank, while acknowledging the severity of the issue, reassured the public that measures are being taken to rectify the situation.
Mrs. Hakama Sidi Ali, the Bank’s Acting Director in charge of Corporate Communications, provided insights into the ongoing efforts during a conversation with journalists in Abuja.
She disclosed that the CBN is actively monitoring the situation and has already released a substantial amount of cash to its branches nationwide for subsequent distribution to Deposit Money Banks (DMBs).
Addressing the reported cases of hoarding, Sidi Ali clarified that the currency in circulation stood at N1 trillion as of February 2023. Astonishingly, this figure has surged to over N3.4 trillion within the last two days, indicating a significant injection of cash into the system by the CBN.
Despite this surge, the challenge persists due to the reluctance of individuals who, driven by past experiences, are hoarding cash.
Expressing empathy towards Nigerians and their concerns, Sidi Ali affirmed that the CBN possesses an ample cash supply to cater to the day-to-day transaction needs of the populace. However, she emphasized the need for patience as the CBN works diligently to address the prevailing scarcity, particularly with the festive season approaching.
The Acting Director urged Nigerians to remain patient, assuring them that the CBN is taking the necessary steps to ensure the availability of cash during the yuletide and beyond.
While making this appeal, she also encouraged citizens to accept all Naira banknotes for their daily transactions, reinforcing the importance of maintaining trust in the national currency.
In addition to addressing the immediate challenges, Sidi Ali reiterated the CBN’s earlier call for the public to embrace alternative modes of payment and electronic channels. This proactive measure aims to alleviate pressure on the use of physical cash, promoting a more resilient and efficient financial ecosystem.
As the CBN navigates the complexities of the current cash scarcity issue, the situation highlights the need for a collaborative effort between the central bank and the public to ensure a smooth and sustainable resolution.
The evolving landscape of financial transactions underscores the importance of embracing technological advancements while upholding the reliability and accessibility of traditional currency.
