The Central Bank of Nigeria attributes the current shortage of cash to commercial banks’ extensive withdrawals from CBN branches nationwide. This shortage has prompted banks to impose limits on withdrawals, while Point of Sale (PoS) operators are increasing their transaction charges by 100%. The scarcity has led PoS operators to resume purchasing cash from traders and petrol station attendants.
Former CBN Director of Communications, Isha Abdulmumin, had previously accused commercial banks of causing the cash scarcity, asserting that the apex bank possesses sufficient cash reserves. Moreover, the CBN has instructed banks to issue and accept old naira notes following a court ruling.
CBN Said:
Nigerians are stocking up on cash as Christmas approaches. Despite three weeks passing since the statement, the cash scarcity has intensified, leading to queues forming at different ATM locations once again. There are suspicions that this shortage is linked to citizens hoarding cash due to concerns about the prior December deadline, imposed by the Supreme Court, related to the circulation of older N200, N500, and N1000 notes. Subsequently, the Supreme Court later clarified that these notes should circulate indefinitely.