The Central Bank of Nigeria (CBN) has identified hoarding as the main cause of the scarcity of the newly designed naira notes. CBN’s Director of Consumer Protection, Mrs. Rashidat Mongunu, made this statement during a recent monitoring visit to microfinance banks in Offa, Offa Local Government Area of Kwara.

According to reports from the Nigerian News Agency (NAN), the CBN monitoring team first paid a visit to the Olofa of Offa, Oba Mufutau Gbadamosi, before proceeding to Stockcorp Microfinance and Ibolo Microfinance banks.

Mrs. Mongunu stressed that the CBN had made the redesigned notes available in sufficient quantities, but individuals who hoard the notes are contributing to the shortage, which is further exacerbated by the large number of people visiting banks to withdraw money at the same time.

“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.

While discussing the management of the currency cycle, Mrs. Rashidat Mongunu of the Central Bank of Nigeria (CBN) stated: “We have not completed the currency management cycle, as the CBN expects that the naira it has issued will eventually return to the banking system. However, currently, everyone who is receiving naira notes is hoarding them. Thus, no matter how much naira the CBN supplies, if this behavior continues, it will never be enough, even if the CBN continues issuing currency until December.”

Monguno included:

“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.”