CBN Sends Important Message on Naira Scarcity as Nigerians Battle Cash Crunch
Central Bank of Nigeria Addresses Cash Scarcity Concerns Amid Economic Challenges
As Nigeria grapples with a looming naira scarcity, the Central Bank of Nigeria (CBN) has moved to reassure the public, asserting that an ample supply of currency is available. This announcement follows widespread complaints from bank customers regarding the scarcity of banknotes at various access points, including counters, ATMs, Point of Sale (PoS) terminals, and Bureau de Change (BDCs).
In response to the concerns raised, the CBN’s Corporate Communications Department released a statement emphasizing that there is no shortage of banknotes, and there is a sufficient supply to support economic activities across the country.
According to the CBN, the reported scarcity is primarily attributed to the significant volume of cash withdrawals from its branches by commercial banks nationwide. Additionally, panic withdrawals by customers at ATMs contribute to the perceived scarcity.
“The attention of the CBN has been drawn to reports of alleged scarcity of cash at banks, ATMs, PoS, and BDCs in some major cities across the country. Our findings reveal that the seeming cash scarcity in some locations is mainly due to high-volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs,” stated the CBN’s official communication.
While acknowledging the concerns of Nigerians, the CBN assured the public that an ample stock of currency notes is available for economic activities. The CBN branches nationwide are actively working to ensure the seamless circulation of cash in their respective states of operation.
To address the situation, the CBN advised Nigerians to refrain from panic withdrawals, emphasizing that there is enough cash in circulation to support economic activities. Additionally, the public was encouraged to explore alternative payment methods to alleviate pressure on traditional touchpoints.
The ongoing challenges have prompted Point of Sale (PoS) operators to resume purchasing cash from traders and petrol station attendants due to reported cash shortages in banks. In response, some PoS operators have increased transaction charges by 100%, raising concerns among consumers.
As the situation unfolds, the CBN remains vigilant and has issued a warning against the circulation of counterfeit banknotes. The apex bank urged individuals involved in such activities to cease the criminal act or face legal consequences. Counterfeit banknotes have been reported in food markets and other commercial centers across major cities in Nigeria, adding to the complexities of the current economic landscape.
