Index to Nigerian Newspapers

Analysts raise concern over N3.79tn outside banking system

The Central Bank of Nigeria (CBN) has reported a surge in unbanked money, reaching N3.79tn in June 2024, a significant increase from N3.61tn in April. This has hindered the Central Bank of Nigeria's ability to effectively implement its policies and manage the country's economy. The Central Bank of Nigeria has been promoting financial inclusion through campaigns, but many Nigerians still lack basic banking knowledge. The increasing volume of cash outside the banking system has also raised concerns about potential cash pool inflation. The total currency in circulation increased to N4.05tn in June, while the Central Bank of Nigeria special intervention fund decreased by 35.7%. This reduction could be part of the Central Bank of Nigeria's strategy to manage the country's money supply and stabilize the economy, but it also exacerbates difficulties banks face in meeting recapitalisation demands. The Central Bank of Nigeria's net foreign assets have increased to N18.33tn, signaling strength in the country's external reserves, but net domestic assets have slightly decreased.

Adaji Daniel | Finance | Punch Newspaper | Thursday, August 15, 2024