The Central Bank of Nigeria (CBN) has disclosed that the currency in circulation (CIC) has reached a new year high of N3.4 trillion as of December 11, 2023.
This was an increase of 13.71% or N410 billion from N2.99 trillion recorded in October 2023.
The CIC comprises the currency outside the banking system and the vault cash of banks.
With this new high of almost N3.4 trillion, currency in circulation has exceeded the level it was in October 2022 (N3.29 trillion) before the naira redesign policy of the CBN.
CBN blames hoarding for cash scarcity
In a statement on Wednesday, the CBN assured Nigerians that there is adequate cash, adding that the current scarcity is due to cash hoarding.
The statement read:
- “The Central Bank of Nigeria (CBN) has again assured members of the public that it is addressing the reported cases of cash scarcity in some major cities across the country. It attributed the current situation to the hoarding of the Naira by some persons due to challenges experienced during the Naira redesign project.”
It added:
- “Giving further clarification on the cases of hoarding, Sidi Ali explained that currency in circulation as of February 2023, was N1 trillion, while that figure had risen to over N3.4 trillion as of December 11, 2023. This, according to her indicated that there was sufficient cash in circulation, except that the cash was in the hands of individuals who were apprehensive due to their previous experiences.”
The CBN further asked Nigerians to be patient as the CBN tries to ensure the availability of cash, especially during the yuletide and beyond. It also asked Nigerians to look beyond cash and embrace alternative means of transaction.
