In response to recent reports of a scarcity of naira notes in certain regions of the country, the Central Bank of Nigeria (CBN) has issued a statement explaining the situation. The reports have indicated that some northern states, including Borno State, are facing difficulties in obtaining naira notes just weeks before the December 31st deadline for the validity of the old naira notes.
The CBN’s Director of Corporate Communications, Isa AbdulMumin, released a statement on Thursday, reassuring the public that the central bank maintains an ample supply of currency notes. According to AbdulMumin, “The attention of the Central Bank Nigeria (CBN) has been drawn to a report of alleged scarcity of cash at banks, automated teller machines (ATM), Points of Sale, and among Bureaux de Change (BDC) in some major cities across the country.”
The statement went on to clarify the reasons behind the perceived cash shortage. AbdulMumin explained, “Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs.”
While addressing the concerns of Nigerians regarding the availability of cash for financial transactions, the CBN emphasized that there is an adequate supply of currency notes to support economic activities in the country. The CBN branches across Nigeria are also actively working to ensure the smooth circulation of cash within their respective states of operation.
In light of the situation, the CBN encouraged the public to refrain from panic withdrawals and assured them that there is sufficient stock to facilitate economic activities. Additionally, Nigerians were advised to explore alternative modes of payment, which could help reduce the reliance on physical cash, ultimately alleviating the pressure on the existing currency supply.
As the December 31st deadline for the old naira notes approaches, the CBN’s reassurance seeks to ease concerns and ensure the stability of the currency supply in the country.