( 2 minutes read)
- Even after a lapse of five weeks of the transition period from old to new Naira notes, there is complete confusion due to the short supply of the new notes. The Central Bank of Nigeria, CBN, and commercial banks appear to be at loggerheads over the circulation of the new currency notes.
Nigeria rolled out the newly redesigned Naira notes on December 15, 2022. President Buhari unveiling the new notes stated that the measure was taken to arrest counterfeiting, control liquidity, and prevent hoarding of currency.
Even after a lapse of five weeks of the transition period from old to new Naira notes, there is complete confusion due to the short supply of the new notes. The Central Bank of Nigeria, CBN, and commercial banks appear to be at loggerheads over the circulation of the new currency notes.
CBN last week directed all commercial Banks to stop dispensing old notes and ensure that all their Automatic Teller Machines, ATMs, are sufficiently loaded with the new notes. It also stopped the withdrawal of new notes over the counter to arrest favoritism. ATM was considered as a fairer mechanism for the dispersal of new notes. Banks say that they did not have a sufficient supply of new notes and were compelled to dispense old notes to continue to serve their customers. The old notes will cease to be legal tenders from January 31 st 2023. Just one week left for the process, and neither the banks nor the customers seem to be geared up for the change. The frustrated banks and customers are seeking an extension of the deadline to cope with the supply crisis.
Also read;
https://trendsnafrica.com/private-sector-in-nigeria-up-against-finance-bill/
CBN has warned that it will initiate sanctions against any bank found to be diverting or hoarding new notes issued to them. Officials of the CBN, have also assured that they will monitor and ensure that bank branches across the country have sufficient stock of new notes and they disburse new naira notes from their ATMs.
