The Central Bank of Nigeria (CBN) has disclosed that there is N3.4 trillion cash in circulation in the country.
The apex bank made this revelation amid concerns about raging cash scarcity as the festive season draws nearer.
Hakama Sidi-Ali, the acting director Corporate Communications of the CBN, made this disclosure in a statement issued in Abuja.
Sidi-Ali said: “There is indeed an increase in currency in circulation. From N1 trillion in February 2023, we have seen a rise to over N3.4 trillion as of December 11, 2023. This demonstrates that enough cash is available, but unfortunately, it’s not circulating due to apprehension among some individuals.”
Acknowledging the challenges Nigerians have faced with previous and current cash shortages, Ali emphasised the CBN’s commitment to addressing the issue.
She said: “We empathize with the recent and past experiences of Nigerians. The CBN assures everyone that we have adequate cash to meet daily transaction needs, even during the upcoming festive season.”
Speaking to the current cash crunch Sidi-Ali attributed the current situation to “the hoarding of the Naira by some persons due to challenges experienced during the Naira redesign project.”
She noted:
“The CBN was monitoring the situation and had released sufficient cash to its branches across the country for onward distribution to Deposit Money Banks (DMBs).”
Ali urged Nigerians to exercise patience while the CBN implements measures to ensure wider cash availability. This includes ongoing efforts to improve cash distribution channels and address logistical challenges.
The CBN’s response aims to quell anxieties about potential cash scarcity during the busy holiday period.
However, Point of Sale (PoS) operators in Abuja have devised a method of sourcing for cash.
They now go to the markets to buy cash from traders while they transfer the agreed sum into the traders bank accounts.
Some PoS operators are warming up to transfer any additional cost they may incur from the new approach to cash to their clients.
Other measures being taken by the CBN to combat hoarding and improve cash distribution include the discontinuation of processing fees charges on deposits to encourage the public to save the cash in their possession.
The CBN is now caught in a delicate balance between addressing currency security concerns and ensuring adequate cash availability for daily transactions.
The CBN has been battling to address both points as well as trying to build trust in the Nigerian financial system. (Nation)
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