High volume withdrawals causing cash scarcity in some locations, says CBN

The Central Bank of Nigeria (CBN) says there is sufficient cash for economic activities after reports of scarcity in some locations.

In a statement by Isa AbdulMumin, CBN director, corporate communications, on Thursday, the apex bank said the scarcity experienced in some locations was due to high volume withdrawals from its branches by banks and panic withdrawals by customers from automated teller machines (ATMs).  

CBN said it received reports of “alleged scarcity of cash” at banks, ATMs, points of sale and among Bureau De Change (BDC) operators. 

“Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs,” CBN said. 

“While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country. 

“The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation. 

“Members of the public are, therefore, advised to guard against panic withdrawals as there is sufficient stock to facilitate economic activities.” 

CBN said Nigerians should use alternative modes of payment to reduce pressure on using physical cash.