Nigerians are facing difficulties in accessing naira notes for their daily transactions, despite the Central Bank of Nigeria (CBN) assuring the public that there is enough currency in circulation.
The scarcity of naira notes has been reported in various parts of the country, including Lagos, Abuja, Kano, Katsina, Jigawa and Adamawa. Many bank customers have complained that they are unable to withdraw cash from the counters, Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureaux de Change (BDCs).
Some customers have also resorted to panic withdrawals, fearing that the situation may worsen as the festive season approaches.
“I went to three different banks today and none of them had cash to dispense. They told me to use the ATM, but the ATM was either out of service or out of cash. I had to pay extra charges to withdraw from a PoS agent,” said Amina Suleiman, a trader in Kano.
“I don’t understand why there is no money in the banks. The CBN should do something about it. We need cash to do our business, especially in the local markets where people don’t accept transfers,” said Musa Ibrahim, a farmer in Jigawa.
The CBN, however, has attributed the scarcity of naira notes to the large volume withdrawals of cash from its branches by Deposit Money Banks (DMBs).
In a statement issued by the Corporate Communications Department of the CBN, the apex bank said there is no shortage of naira notes, noting that there is an 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 branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation,” the statement read.
The CBN had introduced redesigned N200, N500 and N1,000 denominations in October 2022 and set certain deadlines for the old notes of these denominations to cease as legal tender.
However, in November 2023, the apex bank extended the legal tender status deadline of the old design of N200, N500 and N1,000 denominations, following the feedback from the public and stakeholders.
The 2022 Naira redesign policy by CBN caused chaos in the country, as people were unable to withdraw money from banks, ATMs, PoS and BDCs, or exchange their old notes for new ones. Many businesses were affected by the cash crunch, as they had to increase prices, incur costs from lost IT-related transactions, or delay projects due to the scarcity.
However, the Supreme Court of Nigeria intervened and suspended the deadline for the old notes to cease as legal tender, following a lawsuit filed by a human rights lawyer who challenged the constitutionality and legality of the policy.
Many Nigerians appealed to the CBN to address the current naira scarcity and prevent a repeat of the 2022 crisis, as they prepare for the festive season and the new year.
