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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This despite the Central Bank of Nigeria (CBN’s) directives to the banks to continue to issue, accept old and redesigned naira banknotes.

Old N100, N200, N500, N1000 Banknotes Remain Legal Tender Indefinitely, says CBN

Investigations show that banks are still rationing the naira notes to customers in the banking halls, while Automated Teller Machines were programmed to dispense limited cash.

Recall that the country faced massive cash scarcity between February and March this year which resulted to the crumbling of some small businesses.

According to a Punch report, it was that ATMs at FCMB, Gate, Ejigbo, customers who went to withdraw cash were disappointed as they were not dispensing cash.

When some officials of the bank were asked why there was no cash for withdrawal, they said the bank did not load cash into the machine.

At GTBank, Gate Ejigbo, ATM’s were dispensing maximum of N5,000 to non-bank customers, while customers of the bank could withdraw up to N20,000.

Ecobank at Gate, Ejigbo paid non-bank customers up to N10,000, while bank customers could withraw as high as N20,000.

Operators had linked the cash scarcity which commenced in recent weeks to fear that the banking regulator may ban some old denominations by year end.

However, to alleviate the fear, the acting Director, Corporate Communications, CBN, Mrs Sidi Hakama, in a statement, said, “Following the order of the Supreme Court on Wednesday, November 29, 2023, granting the prayer of the Minister of Justice and Attorney-General of the Federation to extend the use of old naira banknotes ad infinitum, the CBN has directed all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to  and from Deposit Money Banks.

“For the avoidance of doubt, the Supreme Court ordered that the old versions of N200, N500 and N1,000 banknotes shall continue to be legal tender, alongside the re-designed versions.”

Some of the spokespersons of the banks who would not want to be quoted said there was no new directive from the CBN to limit the cash transactions to customers.

“The scarcity could be due to some cash hoarded that have not been returned back into the economy,” a bank source said.

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