Despite recent assurances by the Central Bank of Nigeria, CBN that there is enough naira in circulation, reports of scarcity have emerged across the country.
A survey on Wednesday confirmed scarcity in some parts of Abuja, Lagos, Kano, Kwara, Gombe, Edo, Sokoto, and Ekiti States.
Many bank customers and POS operators lamented that it is becoming a challenge to access cash for their economic activities.
This is coming weeks after the apex bank affirmed that it has enough currency notes in the market and hence no need for panic withdrawals by members of the public.
In a circular titled the bank stated that it was aware of the reported scarcity of cash across some major cities.
It noted that there have also been concerns among some members of the public over the legality of old naira notes.
The bank said, “For the avoidance of doubt, while reiterating that there are sufficient banknotes across the country for all normal economic activity, every banknote issued by the CBN remains legal tender and should not be rejected by anyone, as stipulated in Section 20(5) of the CBN Act, 2007.”
It cautioned members of the public to avoid panic withdrawals and stressed that it has enough currency notes to facilitate normal economic activities.
The concern from members of the public over the legality of old naira notes is connected to issues surrounding the naira redesign policy of the apex bank.
The bank noted that it was working with relevant authorities to vacate the subsisting court ruling on the same subject.
A recent report in local media confirmed that the CBN has filed an application before the Supreme Court seeking an extension for old naira notes to remain in circulation.
According to a report from the CBN, the currency in circulation increased by 3.75 per cent to N2.76tn in September 2023.
However, cash scarcity, a major downside of the CBN’s naira redesign policy, has begun to resurface.
Visits to some banks on Wednesday revealed scanty banking halls and ATM galleries.
