Currency outside banks jumped by 58.83 per cent to N4.29 trillion in October 2024, compared to N2.7 trillion in the corresponding period of last year, according to the latest Money and Credit Statistics data released by the Central Bank of Nigeria (CBN) yesterday.
The data also shows that on a month-on-month basis, currency outside banks grew by 6.77 per cent in October 2024 compared with September’s figure of N4.02 trillion, indicating an increase of N271. 85 billion.
The apex bank’s data further shows that the total amount of Currency-In-Circulation (CIC) increased by 5.52 per cent or N238.15 billion to N4.55 trillion in October 2024 from N4.31 trillion in the previous month.
This means that 94.27 per cent of currency in circulation was outside banks in October this year, a situation that negatively impacts efforts by the CBN to curb inflation.
However, in recent months there has been growing public concern over the difficulties customers face in trying to withdraw cash over the counter at their financial institutions and from Automated Teller Machines (ATMs).
In its bid to improve cash availability the apex bank in September announced plans to sanction banks that fail to dispense cash through their ATMs.
It also announced plans to release an additional N1.4 trillion into circulation over the next three months to ease cash flow within the banking system.
Similarly, on November 15, the regulator said a fresh circular in which it directed DMBs to prioritise cash disbursement through ATMs, adding that it had commenced spot checks to ensure efficient and responsible cash disbursement to the public would penalise banks found disbursing naira notes to persons hawking the naira.
New Telegraph reports that in his address at the Annual Bankers Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) on November 29, Governor of the apex bank, Olayemi Cardoso, said that with effect from December 1, 2024, bank customers who are unable to make withdrawals from ATMs will be able to report directly to it through designated phone lines and emails for their states.
Meanwhile, further analysis of the CBN’s latest Money and Credit Statistics data shows that net domestic credit( credit to the private sector plus credit to government ) fell by 1.13 per cent or N1.31 trillion to N113.99 trillion in October 2024 from N115.30 trillion in September.
Specifically, credit to the private sector dropped by 2.49 per cent or N1.89 trillion to N73.95 trillion in October from N75.83 trillion in the previous month. Net credit to government, however, rose by 1.47 per cent or N579.03 billion to N40.05 trillion in October from N39.47 trillion in September.
