The amount of currency outside banks (CoB) in Nigeria experienced a drop of N27.5 billion (0.55%) month-on-month (MoM), falling to N3.6 trillion in April from N3.627 trillion in March 2024.
This decline marks the first decrease in CoB this year, following a steady rise since January 2024, as reported by the Central Bank of Nigeria (CBN).
Despite this reduction, currency-in-circulation (CIC) increased by 1.5% MoM, reaching N3.92 trillion in April from N3.86 trillion in March. The decline in CoB highlights ongoing issues surrounding the availability of cash in banks, with customers and Point of Sale (PoS) operators lamenting limited cash withdrawals from both banks and Automated Teller Machines (ATMs).
Mrs. Omobola Beauty, a PoS agent, shared her struggles, stating, “It is difficult to get cash from the bank now. I don’t really know what is happening. Before, I could withdraw N100,000 to N200,000 over the counter. Now, I’m limited to N50,000. Some banks only allow N20,000, even for agents.”
This scarcity has forced PoS operators to manage their limited cash reserves cautiously, often relying on transfers instead of cash transactions. Mr. Jerry Iduzogie, another agent, explained, “Last week, my bank, which usually provides up to N300,000, restricted withdrawals to N20,000. My wife had to source cash from her trader friends to keep my business running.”
Miss Rebecca Daniels noted that cash is increasingly circulating outside the banking system. “A friend at the bank told me many Nigerians no longer deposit their cash. Most transactions are now done via PoS terminals, keeping cash in public hands rather than banks.”
