Factors contributing to the shortage of Naira notes – CBN

The Central Bank of Nigeria claims that a significant amount of cash withdrawals by Deposit Money Banks from different CBN locations is the reason for the apparent shortage of Naira notes throughout the nation.

The central bank stated that there is a sufficient supply of Naira notes, in response to complaints from certain Nigerians regarding their scarcity.

Numerous bank clients have expressed worries about the lack of Naira notes at the counters, Points of Sale (PoS), Automated Teller Machines (ATMs), and Bureaux de Change (BDCs), according to OBASANJONEWS24.

A few Deposit Money Bank (DMB) representatives asserted that the CBN was not providing the DMBs with a sufficient amount of cash.

However, a statement from the CBN’s Corporate Communications Department claims that there is a enough supply of Naira notes in the economy, thus there isn’t a scarcity of the currency.

It stated that bank clients’ panic withdrawals were partially to blame for the appearance of scarcity.

Reports of purported cash shortages at banks, ATMs, PoS, and BDCs in a few key towns around the nation have caught the CBN’s attention.

According to our research, panicked ATM withdrawals by consumers and huge volume cash withdrawals by DMBs from CBN branches are the main causes of the apparent cash shortage in some areas.

“Although we acknowledge Nigerians’ worries about the availability of cash for financial transactions, we want to reassure the public that there is an adequate supply of currency notes for the nation’s economic needs.

It stated, “The CBN’s branches throughout the nation are also striving to guarantee the smooth flow of currency in their individual states of operation.”

The CBN cautioned the public against panic withdrawals because there was enough stock to support economic activity.

Additionally, it recommended that Nigerians adopt alternate payment methods in order to lessen the need for actual currency.