Naira Scarcity Grips Nation Despite CBN Reassurances

Despite recent reassurances by the Central Bank of Nigeria (CBN) regarding the abundant circulation of the naira, reports of currency scarcity have surged across several states in the country, including Abuja, Lagos, Kano, Kwara, Gombe, Edo, Sokoto, and Ekiti.

Many bank customers and Point of Sales operators have voiced their concerns, highlighting the challenges in accessing cash for their daily economic activities.

The CBN, however, has reiterated its stance on the adequacy of currency notes in the market, cautioning against panic withdrawals.

A circular titled ‘All Banknotes Issued by the CBN Remain Legal Tender’ emphasized the legal status of every banknote issued by the CBN, as stipulated in Section 20(5) of the CBN Act, 2007.

The current scarcity echoes the aftermath of the CBN’s naira redesign policy, which faced resistance and legal challenges.

Despite the CBN’s recent announcement to extend the validity of old N200, N500, and N1,000 notes indefinitely, the scarcity seems to persist, with some attributing it to weak supply from the CBN.

Customers have reported limitations on cash withdrawals, with some banks reportedly allowing only up to N20,000 withdrawals.

While not all banks are experiencing cash shortages, the situation has prompted concerns among the public, adding another layer to the ongoing challenges in the nation’s economic landscape.