CBN Boss addresses cash scarcity: Blames poor naira redesign implementation

Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) has attributed the current cash scarcity in the country to the inadequate execution of the naira redesign policy. Acknowledging the “glaring defects” in various CBN policies, Cardoso announced a comprehensive review initiative aimed at addressing these issues.

Speaking at the launch of the World Bank Nigeria Development Update in Abuja, Cardoso emphasized the need for a thorough examination of past policies. He expressed the intention to create a comprehensive document outlining clear rules and procedures for navigating the Nigerian money market.

Cardoso identified the poorly executed naira redesign as a significant factor contributing to the cash crunch affecting Nigerians. The uncertainty surrounding the policy’s end date, well before the third quarter, triggered widespread hoarding as individuals feared the old notes might lose legal tender status.

“The apprehension surrounding the policy’s end date, well before the third quarter, triggered widespread hoarding. Many feared the old notes would lose legal tender status, prompting them to hold onto their cash,” Cardoso explained.

He provided reassurance by noting that the Supreme Court has decided that the currency will remain valid post the end of the year, alleviating concerns about the legal status of the old currency. The CBN’s comprehensive review initiative aims to address these challenges and provide a clearer framework for the Nigerian money market.