The Central Bank of Nigeria (CBN) has announced plans to inject ₦1.4 trillion into the banking system over the next three months.
This move aims to improve cash availability across the country, especially at Automated Teller Machines (ATMs).
Olayemi Cardoso, the CBN governor, shared this information during a press conference in Abuja on Tuesday.
He addressed concerns regarding cash shortages that have plagued many banks in recent months.
“The apex bank is working closely to ensure there is sufficient cash in the system,” Cardoso stated.
He emphasized that banks must ensure they dispense cash efficiently.
“There is no excuse for not having sufficient cash in the system,” he added firmly.
Cardoso mentioned that the upcoming ₦1.4 trillion will support the ongoing cash flow process.
“Another ₦1.4 trillion is likely to be delivered in another three months to aid that whole process,” he said.
He reassured the public that the CBN is taking all necessary steps to address the cash insufficiency issue.
Cardoso noted that it is the responsibility of deposit money banks to manage the cash effectively.
“We are engaging with all the deposit money banks to ensure that they effectively dispense cash to those in need,” he explained.
He also made it clear that the presence of cash should be a constant in the banking system.
“There should be sufficient cash in their system so that nobody should go there without being able to withdraw,” he said.
To ensure compliance, the CBN has introduced a monitoring system to oversee banks’ cash dispensing operations.
Cardoso highlighted that there will be sanctions for banks that fail to dispense cash as required.
“We have devised a monitoring system, a spot-checking system, whereby we will go to the banks to ensure they follow the rules,” he stated.
“If they do not comply, there will be sanctions,” he warned, emphasizing the importance of accountability.
He expressed confidence that stakeholders understand their roles in facilitating cash distribution.
“Everybody realizes that stakeholders play their part in ensuring that cash gets to the desired places,” Cardoso noted.
The announcement comes on the heels of a cash scarcity crisis that gripped Nigeria late last year.
In November 2023, the CBN acknowledged that the scarcity was due to high withdrawal volumes by banks and panic withdrawals by customers.
Despite these challenges, the CBN assured the public that there is a sufficient stock of currency notes for economic activities.
“The CBN has enough currency notes to ensure seamless cash circulation across the country,” the governor reassured.
