CBN Points to Hoarding, Assures Adequate Measures
The Central Bank of Nigeria (CBN) has shed light on the reported cash scarcity in major cities across the country, attributing it to the hoarding of banknotes by unspecified individuals. The apex bank, represented by Mrs. Hakama Sidi Ali, the Acting Director in charge of Corporate Communications, assured the public that it is actively addressing the situation. While acknowledging the concerns of Nigerians, she emphasized that the CBN is closely monitoring the scenario and has released sufficient cash to its branches nationwide for distribution to Deposit Money Banks (DMBs).
Key Points from the CBN’s Statement
1. Monitoring and Adequate Supply
Mrs. Hakama Sidi Ali clarified that the CBN is actively monitoring the situation and has taken steps to ensure the adequate supply of cash. She highlighted that as of February 2023, the currency in circulation was N1 trillion, and this figure had risen to over N3.4 trillion recently. This indicates that there is sufficient cash supply from the CBN, although the challenge lies in individuals hoarding the cash due to apprehension based on past experiences.
2. Empathy with Nigerians
Expressing empathy with Nigerians, the Ag. Director acknowledged the challenges faced by individuals, both in the past and currently, but reassured that the CBN possesses ample cash to meet the day-to-day transaction needs of the public. She urged patience from Nigerians while the CBN takes necessary steps to ensure the availability of cash, especially during the festive season.
3. Appeal for Patience and Adoption of Alternatives
Mrs. Sidi Ali appealed to Nigerians to exercise patience and encouraged them to accept all Naira banknotes for their daily transactions. Additionally, she reiterated the CBN’s previous call for the public to embrace alternative modes of payment and electronic channels to alleviate the pressure on the use of physical cash.
Conclusion: Navigating Challenges and Encouraging Alternatives
The CBN’s statement provides insights into the reasons behind the reported cash scarcity and assures the public that measures are in place to address the situation. The appeal for patience and the promotion of alternative payment methods reflect the central bank’s commitment to navigating challenges while encouraging the adoption of modern financial solutions.