By Sodiq Adelakun
Nigerians are experiencing a cash crunch as currency in circulation has surged by 21.37 percent in less than three months, according to data from the Central Bank of Nigeria (CBN).
The figures show that currency in circulation reached N3.35 trillion in November 2023, compared to N2.76 trillion in September 2023, when Yemi Cardoso took over as the Governor of the CBN.
The data also reveals that cash held outside of banks increased by 27.80 percent to N3.08 trillion in November 2023, up from N2.41 trillion in September 2023.
In response to growing concerns, the CBN has reassured the public that there is an ample supply of currency in the banking system.
They have urged against panic withdrawals, emphasising that there is no need for alarm. The increase in currency in circulation suggests that Nigerians are feeling the strain of the cash crunch, as they seek to hold more physical cash rather than relying on digital transactions or keeping money in banks.
In a bid to quell concerns and instill trust in the Nigerian financial system, the Central Bank of Nigeria (CBN) has assured the public of an ample supply of currency within the banking system. This move aims to alleviate any apprehensions and encourage Nigerians to maintain confidence in their financial transactions.
Nevertheless, the duration of the cash shortage and the measures the CBN will implement to address this predicament remain uncertain.
The announcement comes in the wake of alleged reports of a scarcity of cash in banks, ATMs, Points of Sale, and Bureaux de Change (BOCs) across major cities in the country.
During this challenging period, Nigerian banks have faced difficulties in meeting customer withdrawal demands, resulting in operational hurdles. To navigate through the cash shortage, Point of Sale (PoS) operators have resorted to procuring cash from traders and even petrol station attendants.
In a creative twist, the CBN’s assurance of sufficient currency stock seeks to quash any doubts and foster a sense of assurance among Nigerians, assuring them that their financial needs will be met.
As the situation unfolds, it remains to be seen how long this cash crunch will persist and what innovative strategies the CBN will employ to rectify the issue at hand.