CBN: Why there’s naira scarcity

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

Some bank customers have recently been complaining about the scarcity of naira notes at the counters, Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureau de Change (BDC).

Speaking on the development, the CBN, in a statement issued by its Director, Corporate Communications, Isa AbdulMumin, on Thursday, November 2, 2023, said the currency scarcity was occasioned by large volume withdrawal of cash from various CBN branches by Deposit Money Banks (DMBs).

AbdulMumin added that panic withdrawals by bank customers were also partly responsible for the scarcity.

He, however, assured Nigerians that there is adequate supply of naira notes in the economy.

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The CBN official stated: “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 due largely to high volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs.

“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.”

AbdulMumin further enjoined Nigerians to shun panic withdrawals, saying there is sufficient stock to facilitate economic activities.

He also advised Nigerians to embrace alternative modes of payment which he said would reduce pressure on using cash.

The Star