Why Naira Is Scarce – CBN

The Central Bank of Nigeria (CBN) has disclosed why there’s an issue of naira scarcity in the nation.

CBN attributed it to individuals hoarding the currency.

Its Acting Director of Corporate Communications, Sidi Ali made the disclosure in a recent statement.

Ali explained that the apex bank has already released sufficient cash to its branches across the country for distribution to deposit money banks (DMBs).

She said:

“On the issue of cash not being sufficient, there is enough cash. CBN issued enough cash to the deposit money banks (DMBs).”

She stressed that as of March 2023, the currency in circulation amounted to N1 trillion.

The Director said:

“But the figure has risen now because of the situation. We have pushed cash into circulation; we have given cash. As it is now, as at December 11, the currency in circulation is N3.4 trillion.

“So, you see, there is cash out there. And CBN is really giving to banks, except that most of this cash is in the hands of individuals. All these panic withdrawals, hoarding is ongoing

“That is why we are doing sensitisation, letting the public have confidence that this December 31 issue is no more. Let them bring out this cash so that they can do transactions. They can go to the banks, and the banks will deposit with the CBN.”

Ali urged Nigerians to exercise patience as the CBN takes necessary steps to ensure cash availability, especially during the holiday season and beyond.