Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has said that the critical flaw in the implementation of the naira redesign policy is responsible for the prevailing cash scarcity witnessed in Nigeria.
This is on the back of continuous reports of cash scarcity witnessed across different parts of the country despite the assurance by the apex bank that there is enough cash in the system.
According to The Nation report, the CBN governor cited defects in various policies and noted that a comprehensive review initiative is ongoing.
According to him, the poorly executed naira redesign is the primary culprit. He noted that the bank is thoroughly examining all policies implemented over time to produce an elegant document outlining the clear rules and procedures necessary for navigating the Nigerian money market.
Cardoso noted that the Supreme Court’s recent ruling upheld the validity of the old notes beyond the initial deadline.
He said this would alleviate apprehensions and incentivize individuals to release their hoarded cash into circulation. He stated that even before the third quarter, there was a great deal of uncertainty about how this would turn out, whether the old money would be valid as legal tender, and how many people had begun hoarding it. The Acting Director of Corporate Communications, Hakama Sidi-Ali, has verified that there is, in fact, more money in circulation. As of December 11, 2023, she claimed, the nation’s currency had increased from N1 trillion to almost N3.4 trillion. According to her, this demonstrates that enough cash is available but not circulating due to apprehension among some individuals.