Business

CBN to Inject ₦1.4 Trillion into Banking System Over Next Three Months

Published by Tope Fakinlede on September 25th, 2024.

CBN to Inject ₦1.4 Trillion into Banking System Over Next Three Months

Cardoso Olayemi, CBN Governor

The Central Bank of Nigeria (CBN) has announced plans to release ₦1.4 trillion into circulation over the next three months to enhance liquidity within the banking sector.

Olayemi Cardoso, the CBN governor, made this declaration during a press conference in Abuja on Tuesday. He addressed ongoing issues related to cash shortages at automated teller machines (ATMs) across the country, assuring that the central bank is taking measures to ensure adequate cash availability.

Cardoso emphasized that banks should have no excuse for failing to dispense cash. “An additional ₦1.4 trillion is set to be delivered in three months to support cash flow within the system,” he stated.

“We are committed to ensuring sufficient cash is available, and there is no justification for a lack of cash in the system. It’s imperative that banks effectively deploy this cash through their ATMs so that all customers can access it when needed,” he added.

To enforce compliance, the CBN has established a monitoring system to evaluate bank services. Cardoso warned that banks failing to dispense cash would face sanctions. “We have implemented a spot-checking mechanism to verify that banks are fulfilling their responsibilities effectively. If they don’t, there will be consequences,” he explained.

He noted that past cash shortages, particularly in late 2023, were largely due to increased withdrawals by both banks and customers, leading to panic among the public. The CBN reassured stakeholders that there is a sufficient supply of currency notes for economic activities and that its branches are working to ensure smooth cash circulation nationwide.