Cash Shortage: CBN reiterates new policy implementation on banks

By Miracle Ogunde

Governor of the Central Bank of Nigeria, CBN, Olayemi Cardoso, has reiterated the apex bank’s implementation of a new policy imposing a fine of N150 million on any bank branch found engaging in the illegal distribution of new naira notes to currency hawkers or other unscrupulous individuals, to curb the issue of cash shortage in the country.

He also expressed confidence that Nigeria’s economy would improve in the 2025 fiscal year through policies and measures already implemented.

Cardoso disclosed this while presenting the bank’s performance index report to the Senate Committee on Banking, Insurance, and Other Financial Institutions, chaired by Senator Adetokunbo Abiru (APC, Lagos East).

The CBN governor announced that the country’s external reserves of $42.01 billion can finance the importation of goods and services for more than nine months.

According to him: “External reserves rose from $38.35 billion as of September 30, 2024, to $42.01 billion as of December 12, 2024.

“The increase in external reserves during this period was largely driven by receipts from crude oil-related taxes and third-party inflows in Q3 2024.

“We maintained a current account surplus and witnessed remarkable improvements in our trade balance.

“Our external reserves level can finance over 9.09 months of imports of goods and services or 13.91 months of imports of goods alone. This is significantly higher than the international benchmark of three months and provides a robust buffer against economic shocks,” he explained.

The apex bank also assured Nigerians of improved economic prospects in 2025.

“Distinguished Senators, as we conclude this briefing, I want to highlight that despite the challenges facing our economy, there are clear reasons for optimism.

“The gradual stabilisation of the forex market, ongoing banking sector recapitalisation, and positive growth trends in key sectors—especially the services sector—indicate a path toward recovery and stability,” he said.

The chairman of the committee, apparently impressed by the presentation, remarked that the CBN governor deserved a round of applause—although applause is not permitted in the Senate chamber.


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