Reason Behind Naira Scarcity— CBN

The Central Bank of Nigeria has revealed why the Nigeria currency is scarce in recent days.

CBN’s Director of Consumer Protection, Mrs Rashida Mongunu made the revelation on Thursday while monitoring microfinance banks in Offa, Offa Local Government Area of Kwara.

According to CBN, the reason was due to some Nigerians who were hoarding the notes.

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The monitoring team first paid homage to the Olofa of Offa, Oba Mufutau Gbadamosi, before heading to Stockcorp Microfinance and Ibolo Microfinance banks.

The CBN director asserted that the redesigned notes were made available in the right quantity by the CBN.

According to CBN, those hoarding the notes were to blame for currency scarcity which was further worsened by the sheer number of people thronging banks to collect money almost at the same time.

She said:

“Because of the attitude of some Nigerians in hoarding the money, even those that don’t really need the money are rushing to get it and keep it, not to spend.”

Mongunu also spoke on the currency management cycle.
She said:

“We have not allowed the cycle to mature, because when you issue out currency as CBN, what we expect is that the naira issued out will come back into the banking system again. But now, everybody collecting the naira is hoarding it. So, no matter how much naira we put out there, if we continue with this attitude, and the CBN [continues to] issue from now till December, it will still not be enough.

“In every economy, you must have proper accountability. You just don’t issue Naira for the fun of it, you issue the amount that is commensurate with the level of activity you have in that country.”