CBN Clarifies the Reasons Behind the ‘Scarcity of Naira’

The Central Bank of Nigeria (CBN) has provided an explanation for the shortage of naira notes within the country. In a statement from the CBN’s Corporate Communications Department, the apex bank attributed the apparent scarcity to substantial cash withdrawals by Deposit Money Banks (DMBs) from various CBN branches. Additionally, the CBN acknowledged that panic withdrawals by bank customers have contributed to the perceived scarcity.

The CBN’s response comes in the wake of numerous complaints from bank customers regarding the shortage of Naira notes at various banking channels, including bank counters, Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureaux de Change (BDCs).

Contrary to the notion of a naira shortage, the CBN emphasized that there is an ample supply of currency notes in the economy. The official statement stated, “Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs. While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country.”