Olu Falae, a former Minister of Finance, believes that the government's move to create a shortage of cash in some parts of Nigeria is a strategy to control inflation. Despite the Central Bank's directive for banks to supply both new and old notes, there's still a shortage.
Last year and early this year, the country faced a cash shortage due to currency redesign. Falae expressed on a TV show that the current lack of banknotes might be the government's attempt to manage inflation. He argues that tackling inflation by reducing liquidity might not be the best solution, as the main cause is the increased cost of imports.
Some bank officials suggest that the scarcity is because people are hoarding cash instead of putting it back into circulation.