'Don’t panic' - CBN give reasons for cash scarcity ahead of supreme court December deadline

The Central Bank of Nigeria has assured that there is sufficient banknotes for economic activities and no need for panic withdrawals.

Isa AbdulMumin, the CBN director, corporate communications stated this in a statement issued on Thursday, November 2, 2023.

Legit.ng reported that residents of Kano and Borno have complained of scarcity of cash at banks, automated teller machines (ATMs), Points of Sale and among Bureaux de Change (BDCs).

Why there is cash scarcity

In response, the CBN, in its statement, explained that the scarcity of cash was a result of high-volume withdrawals and panic withdrawals, Punch reports.

The statement reads: “The attention of the Central Bank of Nigeria has been drawn to reports of alleged scarcity of cash at banks, automated teller machines (ATMs), Point of Sale and among Bureax de Change (BDCs), in some major cities across the country.

“Our findings revealed that the seeming cash scarcity in some locations is due largely to high volume withdrawals from CBN branches by Deposit Money Banks, 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 and no need for panic."

CBN also advised Nigerians not to worry, despite a standing Supreme Court order for old 200, 500, 1,000 naira notes.

The apex bank added: “The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation.

“Members of the public are therefore advised to guard against panic withdrawals as there is sufficient stock to facilitate economic activities. Nigerians are also advised to embrace alternative modes of payment which would reduce pressure on using physical cash.”