In response to the newest knowledge from the Central Financial institution of Nigeria’s Central Financial institution of Nigeria’s (CBN) Cash and Credit score Statistics, Nigerians withdrew N364.38bn from banks in November 2024 as a result of money shortage affecting many components of the nation.
CBN additionally acknowledged that foreign money outdoors banks surged to N4.65tn from N4.29tn in October, reflecting an 8.5 % month-on-month enhance.
The financial institution additional acknowledged that the overall foreign money in circulation climbed to N4.88tn in November, up by N328.91bn or 7.2 per cent in comparison with the earlier month.
These figures spotlight the continued dominance of money within the Nigerian financial system regardless of sustained efforts to advertise cashless transactions.
The November determine for foreign money outdoors banks represented a big 51 per cent year-on-year progress in comparison with N3.08tn in November 2023.
Over the course of 2024, money outdoors banks has proven constant progress, beginning at N3.28tn in January and peaking in November.
In February, the determine rose to N3.41tn, a 4 per cent enhance from January, and additional climbed to N3.63tn in March, reflecting a 6.3 per cent enhance.
April noticed a slight decline to N3.61tn, earlier than rebounding to N3.71tn in Might with a 2.9 per cent enhance.
By June, foreign money outdoors banks rose to N3.79tn, a 2.2 per cent enhance, earlier than barely declining to N3.67tn in July, reflecting a 3.3 per cent drop.
Nevertheless, August recorded a restoration to N3.87tn, up by 5.5 per cent, whereas September and October continued the upward trajectory, recording N4.02tn and N4.29tn, respectively.
The November peak of N4.65tn marked the very best determine for 2024, attributed to heightened money demand through the festive season.
Foreign money in circulation adopted an identical pattern, rising steadily from N3.65tn in January to N4.88tn in November.
In February, the determine elevated to N3.69tn, a 1.2 per cent month-on-month rise, and additional climbed to N3.87tn in March, reflecting a 4.8 per cent enhance.
April noticed a slight decline to N3.92tn, earlier than rebounding to N3.97tn in Might.
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By June, foreign money in circulation rose to N4.05tn, whereas July recorded a minor decline to N4.05tn.
August and September noticed additional will increase to N4.14tn and N4.31tn, respectively, whereas October rose sharply to N4.55tn earlier than peaking at N4.88tn in November.
Regardless of these will increase, Nigeria confronted extreme money shortage in direction of the tip of 2024, as stories indicated difficulties in accessing money throughout the nation.
Many banks resorted to rationing withdrawals, and ATMs had been regularly out of service. This shortage compounded financial hardships for residents, particularly through the festive season.
To deal with the scarcity, the CBN carried out measures to enhance money availability.
Efficient December 1, 2024, the apex financial institution directed clients to report difficulties in accessing money on to their banks by state-specific contact numbers and electronic mail addresses.
The CBN additionally instructed Deposit Cash Banks to prioritise money disbursements over-the-counter and by way of ATMs, warning that establishments failing to conform would face penalties.
These efforts are aimed toward making certain enough money provide and addressing operational inefficiencies throughout the banking system.
The CBN has additional emphasised that each one denominations of the naira, together with previous and redesigned notes, stay authorized tender.
This clarification got here amidst public confusion over the validity of older naira notes.
Regardless of these interventions, stories point out that money shortages persist, with restricted withdrawal limits nonetheless affecting many areas.
In November, 95.4 per cent of the overall foreign money in circulation was held outdoors banks, the very best proportion recorded this 12 months.
This pattern underlines the continued choice for money transactions, averaging 93.7 per cent all through 2024.
The reliance on money highlights structural points equivalent to restricted banking infrastructure, low belief in digital cost techniques, and insufficient monetary inclusion, particularly in rural areas.
The dominance of money poses vital challenges for Nigeria’s financial coverage. A big quantity of foreign money outdoors banks reduces the CBN’s capacity to handle inflation and liquidity successfully.
