“Cash Hoarding Crisis: 94% of Nigeria’s Currency Held Outside Banks” – Report


  • “CBN Data Shows Surge in Cash Circulation, With 130% Increase in Physical Money in 2024”
  • “Nigerians Buck Banking System: Cash Holdings Outside Banks Skyrocket, Exceeding N3.6 Trillion”
  • “Fear and Distrust: Nigerians Continue to Hoard Cash Amid Lingering Banking Sector Concerns”
  • “Hoarding Mentality Prevails: Nigerians Stockpile Cash Despite CBN Efforts to Boost Circulation”

A concerning trend has emerged in Nigeria, as new data from the Central Bank of Nigeria (CBN) reveals that an unprecedented 94 percent of the country’s currency is kept outside the banking system. This revelation, highlighted in the March 2024 Money and Statistics data released by the CBN, underscores a decline in trust in the banking sector and poses potential risks to the nation’s economic stability.

Thank you for reading this post, don't forget to subscribe!

According to the CBN’s data, the amount of physical money in circulation, known as M1, has surged significantly compared to the previous year. In January 2024, M1 stood at N3.65 trillion, more than double the N1.39 trillion recorded in January 2023. This upward trend continued throughout the quarter, with M1 reaching N3.87 trillion by March 2024, marking a staggering 130 percent increase from the previous year. This surge suggests that the CBN has injected more cash into the system, likely in response to the scarcity issues experienced in 2023.

Despite the CBN’s efforts to increase cash circulation, the amount of money held outside banks has grown even more rapidly. In January 2024, N3.28 trillion was held outside the banking system, compared to just N792.18 billion a year prior. By March 2024, this figure had ballooned to N3.63 trillion, representing a troubling 150 percent increase year-on-year. This data indicates that Nigerians are hoarding cash at a rate that exceeds the CBN’s efforts to boost circulation.

The roots of this behavior can be traced back to the severe cash scarcity crisis experienced in 2023. The CBN’s implementation of a flawed naira redesign policy, intended to promote a cashless economy and combat crime, resulted in widespread disruption and a loss of trust in banks. Concerns regarding the validity of old notes and difficulties in accessing cash fueled a hoarding mentality that persists today.

While the CBN has acknowledged the issue and warned against cash hoarding, Nigerians remain hesitant to return their money to the banking system. Despite efforts to alleviate concerns and suspend fees on large cash deposits, the reluctance to trust banks persists among the populace.

Discover more from Naija247news

Subscribe to get the latest posts to your email.

OyinyeChukwu Paula
OyinyeChukwu Paulahttp://Vetiva%20Research
OyinyeChukwu Paula Position: Business Journalist, Naija247news OyinyeChukwu Paula is an accomplished business journalist contributing her expertise to Naija247news, one of Nigeria's leading news platforms. With a keen interest in economic affairs, financial markets, and corporate developments, Paula brings a wealth of knowledge to her reporting, delivering insightful analyses on the dynamic business landscape in Nigeria and beyond. Education: Paula holds a degree in Journalism from [Abia State University], where she honed her skills in investigative reporting and business journalism. Her academic background laid the foundation for her commitment to delivering accurate and timely news with a business-focused perspective. Professional Experience: Having amassed experience in the field, Paula's journalistic journey has been marked by a dedication to uncovering stories that impact the business community. Her work spans interviews with key industry figures, coverage of market trends, and in-depth analyses of economic policies. Areas of Expertise: Financial Markets: Paula provides comprehensive coverage of financial markets, offering insights into stock movements, currency fluctuations, and economic indicators. Corporate Affairs: With a focus on corporate activities, Paula delves into mergers and acquisitions, financial reports, and the strategies employed by leading companies. Economic Policy: Keeping a watchful eye on government policies, Paula explores their implications on businesses and the broader economy, providing readers with a nuanced understanding of economic developments. Contributions to Naija247news: Paula's bylines at Naija247news reflect her commitment to delivering quality journalism. Whether unraveling complex financial narratives or simplifying intricate economic concepts, she ensures that her audience is well-informed and empowered. Passion for Business Journalism: Beyond the newsroom, Paula is known for her passion for business journalism's role in fostering transparency and accountability. She believes in the power of information to drive positive change and economic growth. In a media landscape marked by rapid changes, OyinyeChukwu Paula stands out as a dedicated business journalist who continues to shape the discourse on economic matters, contributing significantly to Naija247news's mission of delivering credible and impactful news.

Share post:



More like this

Okomu Oil Seeks Govt, Stakeholders Support Amidst Bandits Attacks

May 25, 2024. Azonuchechi Chukwu. The management of Okumu Oil Palm...

Investors Lose N290bn as NGX Delists Arbico Plc

May 25, 2024. Azonuchechi Chukwu. The Nigerian Exchange Ltd. (NGX) says...

20 States in United States remove degree requirements from government jobs

Over the past two years, more than 20 states...

“I did not announce a ban on smoking and ritual scenes in movies – NFCVB Chief

May 25, 2024. Azonuchechi Chukwu. The Executive Director of the National...

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading