Many are hoarding – CBN's Cardoso blames naira scarcity on Emefiele

 CBN Governor attributes naira scarcity to flawed redesign policy by predecessor.

According to Cardoso, the apprehension surrounding Emefiele's policy end date triggered widespread hoarding, as many feared that the old notes would lose legal tender status.
According to Cardoso, the apprehension surrounding Emefiele's policy end date triggered widespread hoarding, as many feared that the old notes would lose legal tender status.

In a candid revelation during a speech at the launch of the World Bank Nigeria Development Update in Abuja on Wednesday, December 13, 2023, Governor Cardoso pointed to a critical flaw in the implementation of the naira redesign policy initiated under Emefiele's tenure as the primary cause of the current cash scarcity.

Cardoso acknowledged the existence of "glaring defects" in various CBN policies and announced a comprehensive review initiative aimed at rectifying past shortcomings.

"We are taking a thorough look at all our policies implemented over time. This review aims to produce an elegant document outlining clear rules and procedures for navigating the Nigerian money market," Cardoso declared.

Addressing the cash crunch affecting Nigerians, the CBN governor identified the poorly executed naira redesign as the main culprit. According to Cardoso, the apprehension surrounding the policy's end date triggered widespread hoarding, as many feared that the old notes would lose legal tender status.

"Unfortunately, the history of that lies with the naira redesign policy, and coming to the end of the year, way before the third quarter, there was a lot of apprehension with respect to where this was all going to end; and whether the old currency would no longer be good for legal tender, and many started hoarding. This is really what happened," Cardoso explained.

The Governor expressed optimism that the recent Supreme Court ruling upholding the validity of the old notes beyond the initial deadline would alleviate apprehensions and encourage individuals to release their hoarded cash into circulation.

"Happily, the Supreme Court has decided that the currency will be valid post-end of the year," Cardoso noted.

Few days ago the CBN officially declared ample amount of cash in circulation.

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