Nigerians groan as shortage of Naira cash persist in Banks accros the Country – Crime Channels
Nigerians groan as shortage of Naira cash in Banks persist accros the Country
As the holiday season approaches, complaints are mounting from both bank customers and Point of Sale (POS) operators across several states, who are grappling with an ongoing cash shortage.
The issue, which has persisted for over a week in several regions, has left many struggling to access the physical currency they need for increased spending during the yuletide shopping season.
The states most affected by the cash squeeze include Bauchi, Borno, Kaduna, Kano, Kebbi, Taraba, and various satellite towns of the Federal Capital Territory (FCT).
Residents in these areas are finding it increasingly difficult to withdraw cash, prompting concerns over how they will meet rising demands for goods and services.
According to recent data from the Central Bank of Nigeria (CBN), the total currency in circulation has reached an impressive N4.14 trillion as of August 2024.
However, a staggering N3.87 trillion of this amount is currently held outside the formal banking system, with 93.34% of the nation’s currency in the hands of individuals and businesses.
Only a small fraction 6.66% remains within banks.
This persistent gap between currency outside the banking sector and the total money supply highlights a continuing reliance on cash, particularly in northern Nigeria, despite the increasing adoption of digital banking solutions.
For many, cash remains the preferred method of transaction, particularly in rural areas where banking infrastructure may be lacking.
In addition, the CBN’s report shows a dramatic increase in currency in circulation, rising by N1.48 trillion or 55.8% year-on-year from N2.66 trillion in August 2023.
This sharp rise in the money supply underscores the growing demand for cash, even as the country grapples with the challenges of ensuring enough physical notes are available to meet the needs of consumers and businesses alike.
