Yuletide over, the latest data from the Central Bank of Nigeria (CBN), on Tuesday, indicated that currency in circulation dropped by N188.337 billion or 10.59 per cent at the end of January.
According to figures available on the apex bank’s website, currency in circulation as captured at the end of last January stood at N1.588 trillion, compared with N1.776 trillion at the end of last year.
The January 2014 figure was N131.219 billion or 9.0 per cent higher than the N1.457 trillion recorded in the corresponding period of 2013.
Owing to the Christmas festivities, despite the cashless policy initiative, and owing largely to the nation’s cash-centric culture, currency in circulation had in December attained a new 12-month peak, representing N205.779 billion or 13.09 per cent rise over the level in November 2013.
The amount also represented an increase of N145.096 billion or 8.89 per cent over the N1.631 trillion reported for the corresponding period of 2012.
Meanwhile, the CBN said in a statement on Tuesday it has no plans to shut down 600 microfinance bank.
The statement quoted CBN’s Director, Other Financial Institutions Supervision Department (OFISD), Olufemi Fabamwo, as saying the story is totally untrue and misleading, expressing satisfaction with the state of the microfinance industry and the financial condition of the MFBs.
He warned that such a callous and rash misinterpretation of the policy direction in the microfinance sub-could obviously result in the de-marketing of microfinance banks and thus, undermine public confidence which is capable of precipitating panic withdrawals by depositors and investors in the MFBs.
He therefore urged members of the public to ignore and disregard the false story, noting that the microfinance sub-sector has been effectively regulated by the CBN and jointly supervised by the CBN and the Nigeria Deposit Insurance Corporation (NDIC).
Fabanwo added that all MFBs are examined at least once a year, while some are examined more than once, depending on the exigencies of the situation, with follow-up visits to ensure that examiners’ recommendations are implemented and corrective actions are taken by the operators of the MFBs in order to engender stability in the microfinance space.
He advised depositors of microfinance banks to ignore the story as an attempt to subvert the development of the nascent microfinance industry in Nigeria and solicited for their unwavering support to the microfinance industry.
