Cash Relief on the Horizon: Minister Promises Abundance as Naira Woes Ease by New Year

The federal government issued a public apology to the Nigerian populace on Thursday, addressing the prevalent cash crunch across the nation. Minister of Information and National Orientation, Mohammed Idris, conveyed this message during a media briefing held in Abuja. The minister expressed regret over the existing scarcity of naira notes but assured the public that the situation would ameliorate in the coming year.

Highlighting that the current shortage of naira notes is not intentional, Idris emphasized that the Central Bank of Nigeria (CBN) is actively engaged in resolving the issue. He assured citizens that there would be an increase in cash circulation in the upcoming year, seeking to allay concerns and inconvenience caused by the scarcity.

Idris stated, “About naira scarcity, our government is aware that there is this cry by Nigerians about the scarcity of Naira notes, and CBN is already working in that direction. New notes and more will be produced, and Nigerians will have more Naira to spend. It is not a deliberate policy to stifle Nigerians or to take Naira out of Nigerians during the Godwin Emefiele days. That is not the case. It is a process perhaps that the CBN is undertaking that has created a temporary shortfall, and we are hoping that as we go into the New Year, we’ll see a more robust supply of the naira nodes.”

**Backdrop of the Issue**

Reports from various media outlets have confirmed the scarcity of naira notes across the nation. Automated Teller Machines (ATM) in different locations are presently not dispensing cash, compelling businesses to rely on Point of Sale (PoS) transactions for their financial dealings. A recent survey conducted by Infostride News revealed that PoS operators are charging exorbitant transaction fees, reaching up to 100%, due to the challenges in accessing physical cash.

Concerns have arisen regarding the possibility of a recurrence of the naira redesign policy, a situation where Nigerians faced difficulties accessing their hard-earned money. Speculations suggest that the CBN might be holding onto old naira notes, contributing to the shortage. However, on December 13, the CBN issued a circular stating that there is N3.4 trillion in circulation nationwide.

Hakama Sidi-Ali, the CBN’s acting director of Corporate Communications, assured the public by stating, “There is indeed an increase in currency in circulation. From N1 trillion in February 2023, we have seen a rise to over N3.4 trillion as of December 11, 2023. This demonstrates that enough cash is available, but unfortunately, it’s not circulating due to apprehension among some individuals. We empathize with the recent and past experiences of Nigerians. The CBN assures everyone that we have adequate cash to meet daily transaction needs, even during the upcoming festive season.”

Sidi-Ali attributed the current cash crunch to individuals hoarding the naira, stemming from challenges experienced during the naira redesign policy earlier in 2023. She affirmed that the CBN is closely monitoring the situation and has dispatched sufficient cash to its branches nationwide for distribution to deposit money banks (DMBs). The aim is to ensure a steady and seamless flow of cash in the economy.

In conclusion, while acknowledging the inconvenience faced by Nigerians due to the scarcity of naira notes, the government and the CBN are taking proactive measures to address the issue. The assurance of increased cash circulation in the coming year and the CBN’s commitment to monitoring and managing the situation provide a glimmer of hope for a smoother financial landscape in Nigeria.