Naira Crisis Deepens: Fresh Cash Scarcity Hits Major States In Nigeria

Naira Crisis Deepens: Fresh Cash Scarcity Hits Major States In Nigeria

Residents of various states across Nigeria are experiencing a new wave of cash scarcity despite increased efforts from the Central Bank of Nigeria (CBN) to alleviate the issue. According to reports monitored by ireporteronline , this fresh scarcity has become...CONTINUE READING…

increasingly noticeable over the past week, particularly in the northern states.

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Major states facing this cash crunch include Bauchi, Borno, Kaduna, Kano, Kebbi, and Taraba, along with some satellite towns in the Federal Capital Territory (FCT).

The scarcity is evident as data from the Central Bank of Nigeria (CBN) reveals that the total currency in circulation has reached N4.14 trillion, with N3.87 trillion currently outside the banking system. Additionally, CBN data indicates that the currency in circulation has increased by N1.48 trillion, or 55.8 percent year-on-year (YoY), reaching N4.14 trillion as of August 2024, up from N2.66 trillion in August 2023.

A Point of Sales (POS) operator in Borno State, Hamza Abdullahi, told Daily Trust that some businessmen buying up grains on a large scale are contributing to the cash mopping. Abdullahi mentioned that operators are now finding it difficult to obtain the required cash from banks and must rely on traders and petrol stations instead.

He explained, “Traders are busy purchasing new harvests, and to do this, they need cash because many farmers in our rural areas do not use electronic payment channels and some do not even have bank accounts.”

Abdullahi noted that many individuals are also buying goats and other animals transported to the South ahead of Christmas, which are largely cash transactions contributing to the scarcity. He mentioned that POS operators now charge N1,000 for N50,000 withdrawals, up from N500 previously.

Another POS operator in Kano State, Abubakar Sadiq Danzaria, stated that some of his colleagues are taking advantage of the situation by increasing their withdrawal charges.

Visits to ATMs in the affected states show some terminals are not dispensing cash, while others limit withdrawals to between ₦20,000 and ₦50,000 daily. The challenges are also apparent for over-the-counter withdrawals in bank branches.

Attempts by the publication to speak with branch operations managers in most of the states were unsuccessful, as the bank officers said they were not authorized to speak to the media.

Efforts to obtain an official response from CBN’s Acting Director of Corporate Communications, Hakama Sidi, were also unsuccessful as she did not answer a call to her cell phone and did not respond to a message sent via WhatsApp.