N3.4tr in Circulation, says CBN
By Patience Ikpeme
As the anticipation of the festive season mounts and concerns and concerns about cash shortage escalates, the Central Bank of Nigeria (CBN) has revealed that a staggering N3.4 trillion is in circulation across the nation.
Mrs. Hakama Sidi-Ali, Acting Director of Corporate Communications at the CBN, issued a statement in Abuja on Wednesday, shedding light on the nation’s current cash dynamics.
According to Sidi-Ali “currency in circulation as of February 2023, was N1 trillion, while that figure had risen to over N3.4 trillion as of December 11, 2023. This, according to her indicated that there was sufficient cash in circulation, except that the cash was in the hands of individuals who were apprehensive due to their previous experiences”.
Sidi-Ali delved into the factors contributing to the current cash crunch, attributing it to “hoarding practices resulting from challenges encountered during the Naira redesign project.” She underscored the CBN’s proactive stance, monitoring the situation closely and disbursing adequate cash to its branches nationwide for subsequent distribution to Deposit Money Banks (DMBs).
Urging patience from the populace, Ali emphasized the ongoing efforts by the CBN to ensure broader cash availability, including enhancements to cash distribution mechanisms and logistical resolutions.
She empathised with Nigerians, over their previous and current experiences, but insisted that the CBN had adequate cash to meet the day-to-day transaction needs of Nigerians. She, therefore, appealed to Nigerians to be patient while the CBN does the needful to ensure the availability of cash, particularly during the yuletide and beyond.
While also urging Nigerians to continue to accept all Naira banknotes for their daily transactions, Sidi Ali reiterated the Bank’s earlier call to the public to embrace alternative modes of payment, e-channels, to reduce pressure on the use of physical cash.
