CBN IDENTIFIES THE CAUSE OF THE NAIRA SHORTAGE

The cause of the naira shortage throughout the country has been revealed by the Central Bank of Nigeria (CBN).

The top bank said that some people are hoarding the money.

The issue is being handled, according to Sidi Ali, acting director of corporate communications at the apex bank, who spoke with The Cable on Wednesday.

She said the CBN had released sufficient cash to its branches across the country for distribution to deposit money banks (DMBs).

“On the issue of cash not being sufficient, there is enough cash. CBN issued enough cash to the deposit money banks (DMBs),” she said.

Ali said, as of March 2023, the currency in circulation amounted to N1 trillion.

“But the figure has risen now because of the situation. We have pushed cash into circulation; we have given cash. As it is now, as at December 11, the currency in circulation is N3.4 trillion.

“So, you see, there is cash out there. And CBN is really giving to banks, except that most of this cash is in the hands of individuals. All these panic withdrawals, hoarding is ongoing

“That is why we are doing sensitisation, letting the public have confidence that this December 31 issue is no more. Let them bring out this cash so that they can do transactions. They can go to the banks, and the banks will deposit with the CBN,” she added.

Ali asked Nigerians to be patient with CBN as it makes the required preparations to ensure cash availability, particularly over the holidays and beyond.