Cashless policy elusive as customers withdrew N364bn cash in one month

• According to a recent CBN report, Nigerian customers withdrew N364.38 billion in cash from banks in November 2024
• In the same November 2024, the country had the highest figure for money outside banks and total currency in circulation
• These figures are indicative of a losing war against the cash-dominated economy that Nigeria is

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience and a deep understanding of Nigeria's corporate sector and emerging trends in the fintech space.

Nigerian bank customers withdrew N364.38 billion in cash from banks in November 2024.

This finding is contained in the Money and Credit Statistics recently released by the Central Bank of Nigeria.

The report also shows that in the same month, money outside the banks grew 8.5%, from N4.29tn in October to N4.65tn in November 2024. Total currency in circulation also grew 7.5% from N4.55 trillion in October to N4.88 trillion in November 2024.

The CBN report stated that the total currency in circulation also grew 7.5% from N4.55 trillion in October to N4.88 trillion in November 2024. Photo credit - Karen Kasmauski, CBN, Access Bank
Source: Getty Images

All of these figures point to an economy that is still heavily cash-reliant despite the government's efforts to make it cashless.

More insights on the report

The Punch reports that cash outside the banks grew significantly throughout 2024. As at November, the figure showed about 51% growth year on year, from N3.08tn in November 2023 to N4.65 trillion in November 2024. It had also grown almost 50% from N3.28 trillion in January 2024.

November 2024 had the peak figure for the year, probably due to the oncoming festivities in December. The result was a cash crisis, with banks rationing withdrawals and ATMS always out of cash.

CBN directed banks to prioritise cash withdrawals for customers via ATMs and over-the-counter withdrawals to combat the cash scarcity associated with festivities.

The CBN also provided contact numbers and email addresses for customers to report complaints concerning cash withdrawals.

CBN confirms validity of old, new naira notes

Meanwhile, Legit.ng reported that the CBN has dismissed reports claiming that the old series of N200, N500, and N1,000 banknotes will no longer be accepted as legal tender by December 31, 2024.

The apex bank stated that such claims are false and calculated to disrupt the country’s payment system.

The bank directed all banks to continue to issue and accept all denominations of Nigerian banknotes, whether old or re-designed.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: Legit.ng