Why Naira remains scarce – CBN breaks silence

The Central Bank of Nigeria (CBN) has stepped forward to address the buzz around the reported scarcity of Naira notes in various parts of the country.

Many Nigerians have been voicing their concerns about the difficulty in getting cash, especially from banks, ATMs, PoS terminals, and Bureaux de Change. This situation has sparked a lot of conversations, especially among the young and digitally savvy audience of TopNaija.ng.

Responding to these widespread concerns, the CBN, through its Corporate Communications Department, shed some light on the situation. The bank acknowledged that there have been numerous complaints from customers about the unavailability of Naira notes. The issue seems to be particularly pressing at bank counters, ATMs, PoS terminals, and even at Bureaux de Change, which are usually reliable sources for getting cash.

The CBN’s response to this situation is quite straightforward. They pointed out that the perceived shortage of cash is actually due to a couple of key factors. Firstly, there’s been an unusually high volume of cash withdrawals from various CBN branches by Deposit Money Banks (DMBs). This surge in withdrawals has contributed significantly to the appearance of a cash scarcity.

Moreover, the bank also mentioned that panic withdrawals by customers have played a role in this situation. It seems that the rumors of cash scarcity have led many people to withdraw more money than usual, fearing that they might not have access to cash when they need it. This behavior has unintentionally contributed to the problem, creating a cycle where the fear of scarcity is actually causing the scarcity itself.

However, the Central Bank of Nigeria wants to reassure everyone that there’s no need to panic. According to their statement, there is no actual shortage of Naira notes in the country. They emphasized that there’s an adequate supply of currency for the economy’s needs.

The CBN’s statement aimed to calm the public, especially young Nigerians who are increasingly reliant on cash for various transactions. They said, “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.”