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Cash outside banks hits N4.3tn, CBN warns on scarcity

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Nigeria continues to face cash scarcity despite a significant year-on-year increase of N1.59 trillion in the amount of currency held outside banks.

Data from the Central Bank of Nigeria’s money and credit statistics shows that a substantial proportion of currency in circulation remains outside the banking system, with more than 90 per cent consistently held outside formal financial institutions in 2024.

The data revealed that currency outside banks surged to N4.29tn in October 2024, accounting for 94.3 per cent of the total currency in circulation of N4.55tn.

This represents a significant year-on-year growth of 59 per cent or N1.59tn from N2.70tn in October 2023, when 89.6 per cent of the total currency was outside banks.

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On a month-on-month basis, the amount held outside banks increased by 6.8 per cent or N270bn, compared to the N4.02tn recorded in September 2024.

In September 2024, currency outside banks stood at N4.02tn, representing 93.1 per cent of the total currency in circulation of N4.31tn.

This marked a year-on-year increase of 66.3 per cent compared to N2.42tn in September 2023, when 87.5 per cent of the total was outside banks. The month-on-month increase was 3.8 per cent.

In August 2024, currency outside banks rose to N3.87tn, which accounted for 93.3 per cent of the total currency in circulation of N4.14tn.

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This represented a year-on-year increase of 73.9 per cent compared to N2.22tn in August 2023, when 83.6 per cent of the total currency was outside banks.

The trend continued in July 2024 with N3.67tn held outside banks, representing 90.5 per cent of the total currency in circulation of N4.05tn.

Despite efforts to promote cashless transactions, the data shows that Nigerians remain deeply reliant on cash, which could hinder the country’s push for modernised financial systems.

The President, Association of Senior Staff of Banks, Insurance, and Financial Institutions, Olusoji Oluwole, attributed the worsening cash shortage across the country to the CBN’s inability to meet the cash demands of commercial banks.’

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CBN to fine banks

Meanwhile, the CBN on Friday announced a fine of N150m per branch on Deposit Money Banks found guilty of facilitating the illegal flow of mint naira notes to currency hawkers and unscrupulous agents.

Saturday PUNCH had reported the surge in the hawking of naira notes at exorbitant charges in different parts of the country, as Nigerians continue to struggle with limited access to cash in banking halls despite threats by the CBN.

The apex bank disclosed this in a circular issued on Friday, December 13, 2024 and signed by the acting Director of the Currency Operations Department, Mohammed Olayemi.

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The circular revealed that the CBN was concerned about the increasing prevalence of mint naira notes being traded by hawkers, a practice the bank described as impeding efficient and effective cash distribution to customers and the general public.

The circular, which referred to an earlier directive dated November 13, 2024, highlighted the apex bank’s determination to address the commodification of the naira.

Under the directive, any branch of a financial institution found culpable will face a penalty of N150m for the first violation.

Subsequent infractions, the CBN warned, would attract stricter sanctions under the provisions of the Banks and Other Financial Institutions Act 2020.

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To ensure compliance, the apex bank stated that it would increase periodic spot checks in banking halls and ATMs while deploying mystery shoppers to uncover illicit cash hawking spots across the country.

The circular read, “CBN will continue to intensify the periodic spot checks to the banking halls/ATMs to review cash payouts to banks’ customers, as well as mystery shopping to all identified cash hawking spots across the country.

“In this regard, erring deposit money banks or financial institutions that are culpable of facilitating, aiding, or abetting, by direct actions or inactions, the illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify naira banknotes shall be penalised at first instance N150,000,000.00 (one hundred and fifty million naira) only, per erring branch, and at later instances, apply the full weight of relevant provisions of BOFIA 2020.”

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Nigerian Army disowns fake SSCC Course 50/2027 recruitment advert

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The Nigerian Army on Monday disowned a fake advertisement circulating on social media and other online platforms, inviting applications for the Short Service Combatant Commission (SSCC) Course 50/2027.

This was contained in a statement made available to Defence Correspondents in Abuja by the spokesperson of the Service, Colonel Appolonia Anele.

According to the statement, “the Nigerian Army categorically states that this advertisement is false, fraudulent and did not emanate from the Nigerian Army.”

The statement warned members of the public to disregard the fake advertisement and urged prospective applicants not to apply through, patronise or make payments to any individual, group or website claiming to conduct recruitment on behalf of the Service.

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It emphasised that all recruitment and commissioning exercises were strictly free, transparent and merit-based, and that official recruitment announcements were made only through national newspapers, the Nigerian Army’s verified social media platforms and other recognised official communication channels.

It declared that “no form is sold and no person or agent is authorised to facilitate recruitment or demand payment at any stage of the process”.

It advised those behind the criminal act to desist immediately, adding that security agencies had been activated to identify, arrest and prosecute all individuals involved in producing, circulating or using the fake advertisement to defraud innocent Nigerians.

The statement warned that anyone found culpable would face the full weight of the law.

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The statement reaffirmed that the Nigerian Army remained committed to maintaining the integrity of its recruitment process and urged members of the public to verify all recruitment information through official Nigerian Army channels only.

Suspicious recruitment activities should be reported immediately to the nearest military formation or security agency.

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HoS exposes irregularities in PFIPC documents as Reps probe begins

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The Office of the Head of the Civil Service of the Federation and the Central Bank of Nigeria have distanced themselves from the establishment and operations of the Presidential Foreign Investment Promotion Council and the Presidential Economic Advisory Council as the House of Representatives continued its investigation into the bodies’ alleged creation without a valid legal framework.

According to Vanguard, both institutions made the disclosures on Monday while appearing before the House Ad-hoc Committee probing the councils’ legal status and operations.

The Head of the Civil Service of the Federation, Mrs Didi Esther Walson-Jack, told the committee that her office had no constitutional responsibility for establishing government agencies, explaining that its role was limited to approving the administrative structures of federal agencies.

“The approval and establishment of agencies is not within the purview of the Office of the Head of the Civil Service of the Federation. However, the OHCSF is responsible for approving the administrative structure of federal government agencies,” a representative of the office told lawmakers.

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The official disclosed that the council applied for approval of its organisational structure on August 6, 2025, but the request was declined because it failed to provide the required supporting documents.

“From our records, the council submitted a request to the OHCSF for approval of its organisational structure on the 6th of August, 2025, without providing the requisite documents. Consequently, the request was not granted,” the representative said.

The OHCSF, however, confirmed that officials of the Presidential Economic Advisory Council and the Presidential Foreign Investment Promotion Council sought an establishment and recruitment waiver during the 2025 annual manpower budget defence.

According to the office, the council stated that it had been operating mainly with personnel deployed or seconded from other government institutions and later requested approval for 314 positions, comprising 14 existing staff and 300 additional positions.

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The office also informed lawmakers that it later discovered irregularities in the documents presented by the council as its legal basis.

“It was observed that the document presented by the council as its enabling law or legal instrument did not really carry the requisite features,” the representative said.

Walson-Jack also denied claims that her office deployed civil servants to the council or allocated office accommodation to it.

“We wish to state that there was no deployment of staff by the Office of the Head of the Civil Service of the Federation to the council,” she said, adding that issues relating to the establishment and supervision of the council were the responsibility of the Office of the Secretary to the Government of the Federation and other relevant institutions.

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Also appearing before the committee, the Central Bank of Nigeria said two foreign currency accounts opened for the Presidential Economic Advisory Council and the Presidential Foreign Investment Promotion Council remained inactive with no funds.

Representing the CBN Governor, Director Hamisu Abdullahi said the accounts were opened following a request from the Office of the Accountant-General of the Federation.

“On July 30, 2025, we received a mandate dated July 29, 2025, from the Office of the Accountant-General of the Federation to open one United States dollar domiciliary account and one Pound Sterling domiciliary account,” Abdullahi said.

He explained that the accounts were never activated because the council failed to provide authorised signatories.

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“Those two accounts remain inactive with zero balance and have never been operated,” he said.

Abdullahi added that no financial transactions, including foreign exchange allocations, remittances, inflows or outflows, had been recorded on the accounts since they were opened.

Following the submissions, Chairman of the House Ad-hoc Committee, Abdulmalik Danga, directed the apex bank to submit complete records relating to the accounts.

“We want details of account activities relating to the Presidential Foreign Investment Promotion Council as well as the Presidential Economic Advisory Council. From the opening of the accounts to their last status, this committee wants the complete records,” Danga said.

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FG denies rumours of Defence Minister Christopher Musa’s alleged resignation

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The Federal Government has dismissed as false reports circulating on social media alleging that the Minister of Defence, General Christopher Gwabin Musa (Rtd.), plans to resign from office.

In a statement issued on Monday, the Office of the Minister described the reports as “malicious” and “entirely fabricated,” urging the public to disregard them.

The statement, titled “False Rumour Regarding the Honourable Minister of Defence,” was signed by the Minister’s Special Assistant on Media, Leah Katung-Babatunde.

According to the statement, the office’s attention was drawn to online reports claiming that General Musa had expressed an intention to step down from his position.

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“We wish to state unequivocally and in the strongest possible terms that these rumours are absolute falsehoods borne out of complete mischief,” the statement said.

It added that General Christopher Gwabin Musa (Rtd.), OFR, remains fully focused on his responsibilities and committed to implementing the Federal Government’s national defence and security agenda.

The statement noted that the minister remains dedicated to overseeing the nation’s defence strategy and delivering on his mandate.

The government also urged members of the public and media organisations to verify information through official channels before publishing or sharing it.

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“The general public is hereby urged to disregard this fake news. We strongly advise media outlets and internet users to desist from spreading unverified information and to seek clarification from the office on matters concerning the Minister,” the statement added.

The Federal Government reiterated that the Defence Minister remains in office and continues to discharge his duties.

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