Amidst the scarcity of the Naira notes, the Central Bank of Nigeria (CBN) has revealed that the currency outside the vaults of banks at the end of January stood at 788.92 billion.
This represents a 69.3 per cent decrease from N2.6 trillion recorded in December 2022.
This was contained in the CBN’s Money and Credit Statistics for the month of January 2023. However, the currency in circulation in the month under review stood at N1.37 trillion, representing 54 per cent decline from N3.01 trillion recorded in December 2022.
This development stemmed from the CBN’s aggressive monetary policy to phase out old currency notes and introduce the new notes in circulation.
This also came on the back of the huge notes deposited by Nigerians ahead of the initial January 31, 2023 stated by the apex bank.
The CBN thereafter extended the deadline to February 10, 2023 after much pressure. This resulted into huge queues seen in banking halls and this contributed to the reduction in currency outside the banking system.
Meanwhile, mobile banking applications continued to suffer glitches on Tuesday, leaving Nigerians stranded. Although, Daily Sun observed that some banks have started dispensing the old N200 notes to customers over the counter.
Following President Muhammadu Buhari’s pronouncement last week, the volume of business transactions has significantly reduced while migration to e-channels has seen noticeable upsurge which has resulted in failed transactions.
Although, the CBN had insisted that the banks have adequate money and even accused banks of paying money to their priority customers, leaving the vulnerable to lament.
For instance, Ogechi Mbachu, a trader at Orile Iganmu axis, said, “I had felt that I was in sync with what the CBN’s cashless policy stood for even though it has been hell. But the glitches experienced so far has made me have a rethink. If we really want this policy to work, then the FG, CBN, telecom providers and banks have to work together.
As at now, I am currently owing millions to the person who supplied my goods to me at Balogun market because the money I sent to his account has not been received for like days now”.
Also speaking to Daily Sun, Mr Hamza Ibrahim, a dealer in clothing materials, said, “Right now I am very upset with my customer who is a tailor, Up until weeks, he had told me that he transferred money to my account and I am yet to get it which is still making me upset”.
When Daily Sun tried calling some banks as to why most of their applications were no longer working efficiently before the scarcity of the naira notes began, there was no answer.
Economic analysts who spoke to Daily Sun via telephone chat, blamed the glitches on poor
network robustness and overloaded systems are also major issues, hence leading to increased demand which has continued to put a strain on the banks’ technology infrastructure and systems.
A stockbroker who craved anonymity because of the sensitivity of the matter said, “As rightly noted, failed e-payment transactions is a perennial problem in the Nigerian financial sector. Whatever is the technical or structural deficiencies, Nigerians deserve efficient e-payment channels. As Nigeria has carried out several reforms to reposition its banking sector, an important component of the reforms cannot be left to suffer.
Also, the economy is being threatened by this persisting cash scarcity issue, it is left for the NIBSS to see how it can address the failed online transaction issues”.
