In a surprising turn of events, reports of a scarcity of the Nigerian currency, the naira, have surfaced across the country, contradicting recent assurances by the Central Bank of Nigeria (CBN) that there is an ample supply of the currency in circulation.
A survey conducted by The PUNCH on Wednesday confirmed the scarcity in various regions, including Abuja, Lagos, Kano, Kwara, Gombe, Edo, Sokoto, and Ekiti States. Many bank customers and Point of Sale (POS) operators expressed their frustration, citing difficulties in accessing cash for their daily economic activities.
This development comes weeks after the CBN issued a circular titled ‘All Banknotes Issued by the CBN Remain Legal Tender,’ assuring the public that there is no need for panic withdrawals and that there are enough currency notes in the market. The CBN emphasized that every banknote issued by the central bank remains legal tender.
The confusion among the public regarding the legality of old naira notes stems from the naira redesign policy announced by the former CBN governor, Godwin Emefiele, in October 2022. The plan aimed to redesign some naira denominations (N200, N500, and N1000 notes) and reduce currency circulation, with the old versions losing their legal status by January 31, 2023.
However, the policy faced resistance, leading to state governments taking the matter to the Supreme Court. In March 2023, the apex court invalidated the new naira design policy and extended the validity of the old notes until December 2023. The CBN recently announced plans to further extend the validity of the old N200, N500, and N1,000 notes indefinitely, filing an application before the Supreme Court to vacate the existing court ruling on the matter.
Despite these assurances and legal developments, a tangible scarcity of cash has emerged in various parts of the country. The situation is evident in banking halls and ATM galleries, with customers facing limitations on the amount they can withdraw. Some banks are reportedly dispensing only N5,000 via ATMs to non-customers, exacerbating the challenges faced by the public.
A banker, speaking anonymously, blamed the cash scarcity on insufficient supply from the CBN, stating, “It is the CBN that is responsible for this cash scarcity. We are not getting enough from them. They are just causing unnecessary suffering for the masses.”
Customers of different banks shared their experiences, with reports of withdrawal limitations ranging from N10,000 to N20,000 across the counter. The scarcity is not uniform, as some banks and branches seem unaffected, while others are grappling with the shortage of cash.
The impact of the naira scarcity extends beyond physical banking locations, affecting Point of Sale operators, store owners, and customers relying on electronic transactions. POS operators in Gombe State expressed concerns about their inability to access a sufficient amount of cash, resorting to traders in the market to sustain their businesses.
Residents across various states, including Sokoto, Edo, and Kwara, have voiced their frustration over the challenges in withdrawing cash, both from ATMs and across the counter. Some have reported an increase in charges by POS operators, adding another layer of concern for consumers.
As the situation unfolds, stakeholders, including the CBN and relevant authorities, are expected to address the root causes of the naira scarcity and implement measures to ensure the smooth flow of currency in the country. The public remains hopeful for a swift resolution to alleviate the challenges faced in accessing cash for daily transactions.
