The Central Bank of Nigeria (CBN) on Wednesday blamed the seeming cash scarcity in some major across the country on high volume withdrawals from its branches by Deposit Money Banks (DMB) and panic withdrawals by customers from automated teller machines (ATM) , Points of Sale and among Bureaux de Change (BDCs).
While denouncing reports of alleged scarcity of cash, the CBN in a statement by Isa AbdulMumin, the Director, Corporate Communications Department, assured “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 added, urging members of the public to guard against panic withdrawals.
The statement further urged Nigerians “to embrace alternative modes of payment, which would reduce pressure on using physical cash.”
Investdata could not a ascertain whether or not the panic and large volume withdrawals has any correlation with the December 31 deadline when the old currency notes would cease to be legal tender, in line with the Supreme Court ruling on the currency swap undertaken by the CBN under the leadership of Godwnin Emefiele as governor.
The swap which became effective from December 15, 2022, was initially billed to end on January 31, but the deadline was shifted to February 10. According to the CBN, the move was to enhance control of the currency in circulation, manage inflation, as well as tackle counterfeiting.