By Babalola Seyi
The Central Bank of Nigeria, CBN, has blamed the scarcity of the new naira on Nigerians hoarding the notes.
Mrs. Rashidat Mongunu, CBN’s Director of Consumer Protection, stated this on Thursday while inspecting microfinance banks in Offa, Offa Local Government Area, Kwara.
According to NAN, the monitoring team first paid respect to the Olofa of Offa, Oba Mufutau Gbadamosi, before proceeding to Stockcorp Microfinance and Ibolo Microfinance banks.
The CBN director stated that the CBN made the redesigned notes accessible in sufficient quantities, but individuals hoarding the notes are responsible for cash scarcity, which is exacerbated by the overwhelming number of people thronging banks to receive money practically simultaneously.
“Because of the attitude of some Nigerians in hoarding the money, even those that don’t really need the money are rushing to get it and keep it, not to spend,” she said.
Speaking on the currency management cycle, she affirmed: “We have not allowed the cycle to mature, because when you issue out currency as CBN, what we expect is that the naira issued out will come back into the banking system again. But now, everybody collecting the naira is hoarding it. So, no matter how much naira we put out there, if we continue with this attitude, and the CBN [continues to] issue from now till December, it will still not be enough.”
Monguno added: “In every economy, you must have proper accountability. You just don’t issue Naira for the fun of it, you issue the amount that is commensurate with the level of activity you have in that country.”
