CBN: Why there’s naira scarcity

The Central Bank of Nigeria (CBN) has disclosed the reasons behind the scarcity of naira notes in the country.

There have been a series of complaints by some bank customers on the scarcity of naira notes at the counters, Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureaux de Change (BDCs).

Some officials of Deposit Money Banks (DMBs) also claimed that the banks were not getting an adequate supply of cash from the CBN.

However, the apex bank, in a statement issued by its Corporate Communications Department on Sunday, said the seeming currency scarcity was occasioned by large volume withdrawals of cash from various CBN branches by DMBs.

It stated that panic withdrawals by bank customers were also partly responsible for the seeming scarcity.

The CBN said there is no shortage of naira notes, noting that there is an adequate supply of the currency in the economy.

The CBN added: “While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country.

“The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation.”

The apex bank further enjoined Nigerians to guard against panic withdrawals, saying there was sufficient stock to facilitate economic activities.

It also advised Nigerians to embrace alternative modes of payment, which it said would reduce pressure on using physical cash.

Meanwhile, the CBN also warned Nigerians to beware of fake naira banknotes in circulation.

Its Acting Director, Corporate Communications, Hakama Sidi-Ali, who gave the warning in a statement, said the counterfeit naira notes were mainly used for transactions in food markets and other commercial centres across major cities in the country.

She said any person found complicit in the circulation of the counterfeit currency notes would face severe sanctions.

The director noted that the law provided punishment by a term of imprisonment of not less than five years for any person found culpable of counterfeiting naira notes or any other legal tender in Nigeria.

The Star