The Business NG - June 14, 2024

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BusinessNG Newspaper - Today's Edition*


In today's edition, we delve into the alarming rise in the circulation of Naira, which has reached an unprecedented N3.97 trillion. Despite the Central Bank of Nigeria's (CBN) efforts to tighten monetary policy, the currency in circulation continues to surge, with a staggering 90% held outside the formal banking system. This trend indicates a growing loss of confidence in the banking system, as Nigerians opt to hold cash rather than deposit their money in banks.

Our analysis reveals that this trend has severe implications for the economy, including:

- Undermining monetary policy effectiveness
- Constraining liquidity
- Threatening economic growth
- Fueling inflation

We urge the CBN to address this issue by implementing policies that restore trust in the banking system, improve banking security, increase transparency, and promote financial inclusion. If left unchecked, the growing distrust in the banking system could have far-reaching consequences. Get the full story in today's edition of BusinessNG Newspaper.