Nigeria’s Central Bank downplays Naira scarcity, faults panic withdrawals

The Central Bank of Nigeria (CBN) has downplayed complaints of a lack of cash in circulation as expressed by some Nigerians, saying there is an adequate supply of Naira notes to go round.

The CBN gave the assurance following complaints by some bank customers about the scarcity of Naira notes at the counters, Automated Teller Machines (ATMs) Points of Sale (PoS), and Bureaux de Change (BDCs) in different parts of the country.

The lack of cash was also affirmed by some officials of Deposit Money Banks (DMBs) who explained that the DMBs were not getting enough supply of cash from the apex bank.

While reacting, the Central Bank, in a statement by the Corporate Communications Department of the CBN, clarified that the scarcity was caused by large-volume withdrawals of cash from various CBN branches by DMBs.

It added that panic withdrawals by bank customers were also, in some way, responsible for the artificial 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 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,” it said.