About 92% of the currency in circulation (CIC) is outside the banking system as of November 2023.
This surge is highlighted in the latest figures from the Central Bank of Nigeria (CBN), marking a notable rise from the 86% recorded in October 2022, just before the CBN’s naira redesign policy took effect.
The magnitude of this shift is further illustrated by the CIC, which soared by 21.37% in under three months, amid the intensifying cash crunch felt across the nation.
Specifically, the CBN’s data reveals a climb to N3.35 trillion in CIC in November 2023, a significant jump from N2.76 trillion noted in September 2023, coinciding with Yemi Cardoso’s assumption of office as the governor of the CBN.
Also, cash outside banks experienced a 27.80% increase, reaching N3.08 trillion in November 2023 from N2.41 trillion in September 2023.
This surge in non-bankheld cash comes amidst growing public concern over the sufficiency of currency in the banking system.
In response, the CBN issued a statement in November 2023, reassuring citizens of adequate currency stock and advising against panic withdrawals.
The backdrop to this scenario includes widespread reports of cash scarcity at banks, ATMs, Points of Sale, and Bureaux de Change (BOCs) across major cities in Nigeria.
This shortage has placed considerable strain on Nigerian banks, which have struggled to meet customer withdrawal demands, leading to various operational challenges.
