Despite recent assurances from the Central Bank of Nigeria (CBN) regarding the abundance of naira in circulation, reports of scarcity have surfaced across various states in the country.
A survey conducted on Wednesday confirmed the scarcity in parts of Abuja, Lagos, Kano, Kwara, Gombe, Edo, Sokoto, and Ekiti States.
Bank customers and Point of Sales operators, expressing their concerns, highlighted the growing challenge of accessing cash for their economic activities.
This development comes weeks after the apex bank affirmed that it had sufficient currency notes in the market, discouraging panic withdrawals by the public.
The CBN, in a circular titled ‘All Banknotes Issued by the CBN Remain Legal Tender,’ acknowledged the reported scarcity and urged the public not to reject any banknote, emphasizing their continued legal status.
The public’s apprehension over the legality of old naira notes is linked to the issues surrounding the CBN’s naira redesign policy.
In October 2022, former CBN governor Godwin Emefiele announced plans to redesign certain naira denominations and reduce currency circulation.
However, resistance and legal challenges led to the Supreme Court invalidating the new naira design policy and extending the validity of the notes until December 2023.
Recently, the CBN announced plans to extend the validity of the old N200, N500, and N1,000 notes indefinitely.
The apex bank is actively working to vacate the existing court ruling on the matter, filing an application before the Supreme Court for an extension.
Despite an increase in currency circulation reported by the CBN in September 2023, the consequences of the naira redesign policy are resurfacing, leading to cash scarcity.
Some banks are experiencing shortages, with reports of rationing and restrictions on withdrawal amounts.
Bankers attribute the scarcity to a weak supply from the CBN, causing inconvenience for both customers and Point of Sale operators.
In states like Kano, Kwara, Sokoto, and Ekiti, customers are facing challenges withdrawing cash from banks and ATMs.
The scarcity also extends to POS operators, leading to increased charges and difficulties in accessing funds for business transactions.
In Edo and Gombe States, Point of Sale operators express worry over the resurging naira scarcity, impacting their ability to conduct transactions.
Customers resort to alternative payment methods, such as transfers through phones, due to limited access to funds.
As the scarcity persists, various stakeholders, including banking officials and customers, voice their concerns, pointing to the need for clear communication and effective measures to address the challenges associated with naira circulation.
