The hoarding of the new naira by Nigerians, according to the Central Bank of Nigeria (CBN), is the cause of its shortage.
This was said by Mrs. Rashidat Mongunu, Director of Consumer Protection for the CBN, on Thursday while inspecting microfinance institutions in Offa, Offa Local Government Area, Kwara.
According to NAN, the monitoring team first paid respects to Oba Mufutau Gbadamosi, the Olofa of Offa, before visiting Stockcorp Microfinance and Ibolo Microfinance banks.
The CBN director claimed that while the CBN made the redesigned notes available in the appropriate amount, individuals hoarding them are to fault for the currency shortage, which is made worse by the huge volume of people swarming banks to withdraw cash practically simultaneously.
Even people who don’t truly need the money are racing to acquire it and retain it, not to use it, she claimed, because of some Nigerians’ mindset of hoarding.
She stated, about the currency management cycle: “We have not allowed the cycle to mature because, when the CBN issues currency, we expect that the naira issued will return to the banking system once more. However, everyone who is currently collecting naira is hoarding it. Therefore, no matter how much naira we distribute, if we maintain this mentality and the CBN keeps printing money from now until December, it still won’t be enough.
In every economy, you need sufficient responsibility, Monguno continued. You just don’t print Naira for fun; rather, you print the amount that corresponds to the level of activity in that nation.
