Naira scarcity is intensifying nationwide, with banks imposing restrictions on cash withdrawals, according to findings by Igbere TV.
Concerns are mounting among residents in Lagos, Abuja, Kano, Katsina, Jigawa, Adamawa, and other regions, as they grapple with limited access to substantial cash withdrawals from their banks. This resurgence in scarcity evokes memories of challenges faced during the naira swap period.
The impact is particularly pronounced in local markets, notably in northern Nigeria, where both buyers and sellers prefer cash transactions over bank transfers. Consequently, business transactions are experiencing disruptions.
Earlier reports on November 1 highlighted the reappearance of cash scarcity in Borno and Kano states, linked to the approaching December 31 deadline for the discontinuation of old N200, N500, and N1,000 banknotes.
The report had forced the Central Bank of Nigeria (CBN) to explained 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 Automated Teller Machines, ATMs).”
The CBN, through its Director, Corporate Communications, Isa Abdulmumin, added, “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. The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation.”
The CBN had announced in March that in compliance with the order of the Supreme Court, banknotes remained legal tender alongside the redesigned banknotes until December 31.
Last week, the apex bank reassured that both old and new notes remained legal tender and urged Nigerians to continue transacting using them.
“For the avoidance of doubt, while reiterating that there are sufficient banknotes across the country for all normal economic activity, we wish to state unambiguously that every banknote issued by the Central Bank of Nigeria (CBN) remains legal tender and should not be rejected by anyone, as stipulated in Section 20(5) of the CBN Act, 2007,” Abdulmumin had said in the statement.
He had added that branches of the CBN across the country had been directed to continue to issue different denominations of old and redesigned banknotes in adequate quantities to deposit money banks for onward circulation to bank customers.
