CBN Assures Naira Free-Flow Following Pockets Of Scarcity

The Central Bank of Nigeria, CBN, has assured Nigerians that there is enough cash in circulation, in response to the report that some parts of the country have been witnessing cash scarcity in the last few days.

The apex bank urged Nigerians not to panic as it would ensure sufficient cash in circulation, it also advised Nigerians not to embark on panic withdrawals, adding that transactions could also be carried out through electronic and internet banking to reduce pressure on the available cash in circulation.

The reaction comes amidst reports earlier in the week that cash scarcity is being experienced in some parts of the country, particularly in the northern parts of Nigeria.

Some commercial banks in Lagos Island also experienced the same problem on Tuesday, according to customers who said they were forced to resort to POS operators for their transactions after most ATMs failed to dispense cash.

According to sources who spoke to the magazine, the problem was caused following rumuors that the CBN was planning to redesign the naira.  The apex bank has already debunked the suggestion.

In its reaction in a statement signed by the apex bank’s spokesman, Isa AbdulMumin on Thursday, the CBN said it noted “the concerns of Nigerians’ but allayed fears that economic activities are being disrupted due to the perceived problems by some Nigerians, adding that everything is being done to ensure a free-flow of cash.

The CBN said, “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 statement read.

“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 Yemi Cardoso-led apex bank had on Monday debunked reports that it was planning to push on with the naira redesign policy introduced by Godwin Emefiele, the sacked CBN Governor.

Meanwhile, the CBN said it has started to clear the estimated $7 billion outstanding foreign exchange obligations of the Federal Government, on foreign currency forwards contracts owed to banks. The apex bank spokesman confirmed this to Reuters yesterday.