The Central Bank of Nigeria (CBN) has revealed that the currency in circulation (CIC) has surged to a new annual peak of N3.4 trillion as of December 11, 2023, marking a 13.71% increase or N410 billion from the October 2023 figure of N2.99 trillion.
The CIC encompasses currency outside the banking system and the vault cash of banks.
This substantial rise surpasses the October 2022 level (N3.29 trillion) before the naira redesign policy of the CBN.
CBN attributes the current cash scarcity to hoarding and emphasizes that there is ample cash available.
In a statement, the CBN assured the public that efforts are underway to address reported cash shortages in major cities, linking the situation to hoarding resulting from challenges during the Naira redesign project.
Sidi Ali, providing further insight, clarified that the currency in circulation was N1 trillion in February 2023, rising significantly to over N3.4 trillion by December 11, 2023.
This indicates sufficient cash in circulation, with individuals exhibiting apprehension due to past experiences.
The CBN encourages patience as it works to ensure cash availability, especially during the festive season, while also urging Nigerians to explore alternative transaction methods beyond cash.
