Nigerians’ hoarding of the notes, according to the Central Bank of Nigeria (CBN), is to blame for the scarcity of the new naira.
Mrs. Rashidat Mongunu, the consumer protection director at Apex Bank, said this on Thursday while observing microfinance institutions in Offa, Kwara’s Offa Local Government Area.
Before visiting Stockcorp Microfinance and Ibolo Microfinance, the monitoring team paid homage to the Olofa of Offa, Oba Mufutau Gbadamosi.
The director of the CBN asserted that the redesigned notes were made available in sufficient quantities by the CBN, but those hoarding the notes are to blame for currency scarcity, which is exacerbated by the sheer volume of people rushing to banks almost simultaneously to collect cash.
She stated, “Because of the attitude of some Nigerians in hoarding the money, even those who really don’t need the money are rushing to get it and keep it, not spend it.”
She confirmed the currency management cycle by saying:
We have not allowed the cycle to mature because, when the CBN issues currency, we anticipate that the issued naira will return to the banking system. However, everyone who has collected the naira is now hoarding it. Therefore, regardless of how much naira we distribute, it will not be sufficient if we maintain this attitude and the CBN continues to issue from now until December.
You must have proper accountability in every economy. You simply do not issue Naira for the sake of it; rather, you issue the amount that is proportional to the level of activity in that nation.