Naira scarcity: CBN gives update on currency circulation

The Central Bank of Nigeria (CBN, has released a fresh update on currency circulation in Nigeria.

The apex bank disclosed that enough Naira notes are in circulation amid reports of a scarcity of banknotes.

The scarcity of Naira banknotes has become a focal point of discussion and speculation, with citizens expressing concerns about the availability of physical currency for daily transactions. Recognizing the importance of a stable and accessible currency supply, the CBN has taken a proactive stance in providing clarity on the situation.

In its latest communication, the Central Bank of Nigeria disclosed that there is an ample supply of Naira notes in circulation. This announcement comes as a response to the growing unease among the public regarding the availability of physical currency, a crucial component in everyday economic transactions.

The CBN’s move to address concerns about Naira scarcity reflects its commitment to transparency and open communication with the public. By providing a clear update on the current state of currency circulation, the apex bank aims to alleviate worries and maintain confidence in the financial system.

Several factors may have contributed to the apprehension surrounding the scarcity of Naira banknotes. The evolving landscape of digital transactions, coupled with the ongoing economic challenges, could have led to misconceptions about the physical availability of currency. The CBN’s statement serves not only to inform but also to educate the public on the multifaceted nature of currency dynamics in the modern financial landscape.

The Central Bank of Nigeria has been implementing various strategies to ensure the stability and availability of the Naira in the market. These strategies encompass effective currency management, monitoring circulation patterns, and collaborating with financial institutions to meet the demand for physical currency.

The CBN made this known in a statement issued by its Corporate Communications Department.

It also disclosed the reasons behind the scarcity of Naira notes in some parts of the country.

CBN’s reaction is coming amid a series of complaints by some bank customers concerning the scarcity of Naira notes at bank counters, Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureaux de Change (BDCs).

However, the apex bank said the seeming currency scarcity was created by large volume withdrawals of cash from various CBN branches by Deposit Money Banks (DMBs).

It stated that panic withdrawals by bank customers were also partly responsible for the seeming scarcity.

The CBN said there is no shortage of naira notes, noting that there is adequate supply of the currency in the economy.

“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 statement reads.