CBN Reveals Why Cash Is Scarce In Some Parts Of Nigeria, Warns Against Panic Withdrawals

The Central Bank of Nigeria has explained that the scarcity of cash in some parts of the country is due to high volume withdrawals and panic withdrawals from Nigerians.

The apex bank made the disclosure on Thursday while explaining the cause of the reported cash crunch in some parts of Nigeria.

The CBN said its attention has been drawn to reports of alleged scarcity of cash at banks, automated teller machines (ATMs), Points of Sale and among Bureaux de Change (BDCs) in some major cities across the country.

The apex bank said it has investigated the matter and found that “the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs.”

Recall that in the first quarter of 2023, under CBN governor, Godwin Emefiele, the country suffered chronic cash crunch resulting from the redesign of the N1000, N500 and N200 notes.

In order to douse the tension, CBN said there are enough currency notes for transactions

The apex bank said, “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.

“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.”