CBN to inject N1.4 Trillion to boost cash flow

The Central Bank of Nigeria (CBN) has announced plans to inject N1.4 trillion into the banking system over the next three months to improve cash flow.

This was revealed by CBN Governor, Olayemi Cardoso, during a press conference in Abuja on Tuesday.

Addressing the issue of cash shortages in many banks’ automated teller machines (ATMs), Cardoso assured that the apex bank is actively working to ensure sufficient cash is available across the banking network.

He further emphasized that banks have no justification for not dispensing cash to customers, with measures in place to resolve the situation swiftly.

“Another N1.4 trillion is likely to be delivered in another three months to aid that whole process of cash within the system,” he said.

“So from our perspective, we are doing everything possible to ensure that there is sufficient cash in the system. There is no excuse for not having sufficient cash in the system.

“Now it goes to the deployment of that cash and quite frankly, we are working very, very closely, we are engaging with all the deposit money banks to ensure that they are putting these things through their ATMs, effectively dispensing cash to those that are in need.

“And whether they are in need or not, that’s the function of the deposit money banks. And at all points in time, there should be sufficient cash in their system that nobody should go there without being able to withdraw.”

CBN TO SANCTION BANKS NOT DISPENSING CASH

Cardoso said a monitoring system has been put in place to check the services of the banks.

He added that there will be sanctions if any bank fail to dispense cash.

“We ourselves, have devised a monitoring system, a spot-checking system, whereby we will go to the banks and just ensure that these things are done in the way and manner in which they are meant to be done,” he said.

“And if they are not, again, there will be sanctions but I believe that at the stage we are in now, everybody realises that stakeholders play their part in ensuring that cash gets to the desired places they are intended to be.”

Late last year, there were cases of cash scarcity.

On November 2, 2023, the apex bank said the scarcity experienced in some locations was due to a high volume of withdrawals from its branches by banks and panic withdrawals by customers from ATMs.

The CBN also said there was sufficient stock of currency notes for economic activities in Nigeria and assured its branches across the country were working to ensure seamless cash circulation in their respective states of operation.