Cash Scarcity: CBN Gives New Order

The Central Bank of Nigeria (CBN) has issued a directive to commercial banks, instructing them to prioritize cash disbursements through automated teller machines (ATMs) to alleviate the ongoing cash scarcity affecting Nigerians.

In a statement released on Friday, Solaja Olayemi, the Acting Director of the CBN’s Currency Operations Department, warned that banks failing to comply with this directive would face severe penalties. She emphasized the importance of ensuring easier access to cash for citizens, especially as the scarcity continues to disrupt daily transactions and economic stability.

The apex bank also cautioned against supplying naira notes to individuals or groups engaging in the illegal hawking of currency, stressing its commitment to curbing this unlawful practice.

Reports of cash shortages have been widespread, with major states like Bauchi, Borno, Kaduna, Kano, Kebbi, and Taraba among the hardest hit. Some satellite towns in the Federal Capital Territory (FCT) have also been affected, leaving many residents struggling to carry out basic financial transactions.

The scarcity persists despite CBN data showing an increase in currency circulation. As of August 2024, the total currency in circulation reached N4.14 trillion, with a staggering N3.87 trillion of this amount outside the banking system.

Year-on-year comparisons further highlight the significant rise in circulation, with an increase of N1.48 trillion (55.8%) recorded, up from N2.66 trillion in August 2023.

The CBN’s directive aims to address the disparity between the high volume of cash in circulation and the ongoing scarcity affecting Nigerians. By enforcing stricter measures and prioritizing ATM disbursements, the bank hopes to ease the burden on citizens while maintaining the integrity of the financial system.
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