The Central Bank of Nigeria (CBN) has insisted that there would be no extension of the January 31 deadline for the return of the old N200, N500 and N1,000 notes to the banks.
This is as the apex bank has clarified that for now, the deposit money banks are only allowed to dispense the new naira notes through the Automated Teller Machines (ATMs) with the banks barred from distributing the new notes over-the-counter to customers.
According to Thisday, a top official of the CBN who wished to remain anonymous disclosed this in a brief chat, where the source stated that the apex bank had intensified efforts to ramp up the circulation of the new notes.
CBN accuses banks of giving new naira notes to high-profile individuals
- On the issue of distribution of the new naira notes, the CBN official was reported to have said, “Banks are barred from distributing the new notes over-the-counter. All new notes must go to the ATMs. The directive to the banks from the central bank is that they must dispense through their ATMs nationwide and people can go to the ATMs to collect the money. They cannot dispense the new notes across the counter for now until they exhaust the new notes. And when that happens they can then upload the old notes. Until they get another supply of new notes.
- “That is the only way to ensure that the new notes are being circulated. Otherwise, what the banks were doing from our intelligence, was that they were holding the cash and giving it to high-profile individuals and customers over-the-counter and not circulating it to ordinary customers. So, we decided they must only dispense it through ATM machines for now until it fully circulates in the financial system.”
The source warned that banks caught breaching this directive would face stiff sanctions.
CBN to collaborate with NOA on enlightenment and public awareness
Meanwhile, the CBN, in collaboration with the National Orientation Agency (NOA) and various market associations, Will on Tuesday, January 10, 2023, commence aggressive enlightenment and public awareness campaign on the naira redesign project as well as the need to properly handle the naira notes.
The exercise would hold in various markets in Gombe, Minna and Asaba, in the first phase, and also hold in Kano, Ogun and Onitsha this Thursday. The exercise would be extended to other major cities across the country from next week.
For catch up
- Nairametrics had over the weekend reported that the CBN had in a memo, ordered the banks to immediately stop the payment of the new naira notes to customers who are making over-the-counter withdrawals.
- The apex bank, instead, directed that the banks should rather load their ATMs with only new notes to ensure that the currency circulates across the country ahead of the January 31, 2023 deadline when the old notes will no longer be legal tender.
- However, the report suggests that the banks were yet to comply with this directive as of Friday with complaints of inadequate supply of the new notes, prompting them to load their ATMs with the old notes.
- Recall that on November 23, 2022, President Muhammadu Buhari unveiled the new naira notes of N200, N500 and N1,000 at the Council Chamber, Presidential Villa, Abuja, with their circulation commencing on December 15, 2022.
- The CBN Governor, Godwin Emefiele, had said that the move would help to manage the money supply and tackle currency counterfeiting as well as terrorism, among others.
- However, due to the scarcity or inadequate supply of these new naira notes majority of Nigerians and many stakeholders have called on the CBN to extend the January 31 deadline as it will not be feasible for these new notes to adequately circulate around the country at that time.
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