CBN says Nigerians withdrew N365.38 billion in November 2024

• The Central Bank of Nigeria says Nigerians withdrew N365.38 billion in November 2024
• It said currency outside banks and currency in circulation also increased in the month
• Despite the increases, there were widespread reports of cash scarcity, prompting the CBN to intensify efforts to address the challenge

The Central Bank of Nigeria (CBN) says Nigerians withdrew N364.38 billion from banks in November 2024 amid the cash scarcity witnessed in many parts of the country.

This is according to the latest data from the Money and Credit Statistics of the CBN.

The apex bank also stated that currency outside banks increased to N4.65 trillion from N4.29 trillion in October, representing an 8.5 per cent month-on-month increase.

On a year-on-year basis, currency outside banks grew by 51 per cent compared to the N3.08 trillion recorded in November 2023.

The CBN added that the total currency in circulation surged by 7.2 per cent to N4.88 trillion in November 2024, representing a N328.91 billion increase compared to October 2024.

Timeline of increase of currency outside banks in 2024

In 2024, cash outside banks showed consistent growth, starting at N3.28 trillion in January and reaching N4.65 trillion in November.

In February, the figure increased by four per cent to N3.41 trillion and increased further by 6.3 per cent to N3.63 trillion in March.

In April, the figure declined slightly to N3.61 trillion and increased by 2.9 per cent to N3.71 trillion in May.

Currency outside banks increased by 2.2 per cent to N3.79 trillion in June and slightly declined to N3.67 trillion in July, which is a 3.3 per cent decrease.

In August, the figure rose N3.87 trillion, an increase of 5.5 per cent. In September, the figure reached N4.02 trillion and reached N4.29 trillion in October.

Timeline of currency in circulation in 2024

Currency in circulation followed a similar trend of increase as currency outside banks, beginning from N3.65 trillion in January to N4.88 trillion in November.

In February, the figure increased by 1.2 per cent month-on-month to N3.69 trillion. It further increased by 4.8 per cent to N3.87 trillion in March.

In April, the figure slightly declined to N3.92 trillion and increased to N3.97 trillion in May.

In June, currency in circulation grew to N4.05 trillion but declined slightly to N4.05 trillion in July.

The figure increased to N4.14 trillion in August and further increased to N4.31 trillion in September. In October, currency in circulation surged to N4.55 trillion and reached N4.88 trillion in November.

Cash scarcity persisted despite volume of currency in circulation

Despite the high volume of currency in circulation and outside banks, Nigeria faced severe cash scarcity towards the end of 2024, as there were reports of difficulties in accessing cash across the country.

It was reported that banks resorted to rationing withdrawals, and Automated Teller Machines (ATMs) were frequently out of service.

The cash scarcity further compounded economic hardships for citizens, especially during the festive season.

CBN’s efforts to address cash shortages

To address reported cases of cash shortage, the CBN implemented measures to improve cash availability.

On December 17, the CBN introduced a new policy that limits daily transactions of N100,000 per customer for cash-out transactions conducted by Point of Sale (PoS) agents.

The apex bank also set each customer’s weekly cash withdrawal limit at N500,000 irrespective of channel, while each agent’s daily cumulative cash-out limit was pegged at N1.2 million

To halt the illicit flow of minted banknotes to currency hawkers and economic agents that commodify naira banknotes, the CBN announced a N150 million fine at first instance per branch of Deposit Money Banks found guilty.

The apex bank, in a circular on November 13, 2024, announced stringent penalties for banks found culpable of hoarding or diverting cash to hawkers.

The CBN said any bank linked to cash seized from hawkers would face a fine of 10 per cent on the total value of the withdrawn funds, and subsequent violations would attract an incremental penalty of five per cent.

It also warned banks against cash hoarding and diversion, as such practices limit access to cash and undermine its efforts to ensure an efficient and effective cash flow.

CBN to start fining banks over cash scarcity at ATMs

Meanwhile, TheRadar earlier reported that the Central Bank of Nigeria (CBN) issued a stern warning to financial institutions over the ongoing cash scarcity at Automated Teller Machines (ATMs) across the country. 

CBN governor, Olayemi Cardoso, announced that penalties would be imposed on erring banks and other financial players during his address at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria on Friday, November 29.