CBN Refutes Naira Scarcity, Urges Nigerians To Adopt Alternative Payment Methods

CBN Refutes Naira Scarcity, Urges Nigerians To Adopt Alternative Payment Methods
  • PublishedNovember 3, 2023

The Central Bank of Nigeria, CBN, has refuted allegations of cash scarcity in the banking sector as festive season approaches in the country.

CBN spokesman, Isa AbdulMumin, while reacting to reports of alleged scarcity of cash at the banks, automated teller machines (ATMs), Points of Sale (PoS) and Bureaux de Change (BDC) in some major ci9uties across the country, said it has enough volume of banknotes to go round in a statement on Thursday.

AbdulMumin explained that the seeming cash scarcity in some locations was largely due to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs.

There were reported cases of panic withdrawals in parts of Nigeria over fear that the banknotes could be scarce as was experienced at the end of year 2022 festivities, especially as the bank was yet to comment on continued use of the redesigned higher-denominations of the old currency notes.

The court had extended the use of the old banknotes till December 2023 to allow a better circulation of the new notes.

“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.

“Members of the public are, therefore, advised to guard against panic withdrawals as there is sufficient stock to facilitate economic activities. Nigerians are also advised to embrace alternative modes of payment, which would reduce pressure on using physical cash.”

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