The Central Bank of Nigeria, CBN, the apex bank in the country has waded into reports making the rounds about alleged scarcity of cash, assuring Nigerians that there is enough cash in the vaults for their use while adducing reasons for the perceived scarcity.
Over the past couple of weeks, bank customers have been finding it extremely difficult to withdraw sufficient cash from their banks for their business transactions, with some banks pegging the ceiling of withdrawals to N20,000 per customer, leading to severe cash rationing.
During the weekend, the situation got much worse, as commercial banks blame the low cash supply on the CBN.
CBN responding to complaints of widespread cash shortage, recently, said that the seeming currency scarcity was occasioned by large volume withdrawals of cash from various CBN branches by deposit money banks, DMBs.
It said that panic withdrawals by bank customers were also partly responsible for the seeming scarcity.
In the report, the apex bank noted; “The attention of the CBN has been drawn to reports of alleged scarcity of cash at banks, ATMs, PoS and BDCs in some major cities across the country.
“Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs.
“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 branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation,” it said.
The CBN advised members of the public to guard against panic withdrawals as there was sufficient stock to facilitate economic activities.
It also advised Nigerians to embrace alternative modes of payment, which would reduce pressure on using physical cash.