The Nigerian Central Bank has explained why there is still a shortage of new naira in the nation.
The CBN claims that this is because some Nigerians are hoarding the notes.
The CBN’s Director of Consumer Protection, Mrs. Rashidat Mongunu, made this statement on Thursday while inspecting microfinance institutions in Offa, Offa Local Government Area, Kwara.
According to NAN, the monitoring team first paid respects to the Olofa of Offa, Oba Mufutau Gbadamosi, before visiting Stockcorp Microfinance and Ibolo Microfinance banks.
The CBN director claimed that while the CBN made the redesigned notes available in the appropriate amount, individuals hoarding them are to fault for the currency shortage, which is made worse by the huge volume of people swarming banks to withdraw cash 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.”