The past week has been hard for many Nigerians with several information being released to the public, leaving many more confused than before. As the deadline for the old notes as stated by the Central Bank of Nigeira (CBN) elapsed on Friday, February 10, 2023, it became unclear to many if they should accept or reject the old notes.
This is because there was a pending case instituted against the federal government by some state governors on the implementation of the deadline. The Supreme Court had ruled that the government maintain status quo and allow both the old and the new notes to remain in circulation up until the time it decides on February 15.
At the end of its sitting last Wednesday, the Supreme Court adjourned the case till Wednesday, February 22, 2023, insisting that the federal government maintain status quo on the naira. However, President Muhammadu Buhari, in ensuing for peace amongst the turmoil that arose from the scarcity of the Naira, extended the legal status of the N200 note till April 10, 2023 while stating that, the N500 and N1,000 would only be deposited at the CBN.
According to the president, the redesigning policy was prompted by the need to restore the statutory ability of the CBN to keep a firm control over money in circulation. “In 2015 when this administration commenced its first term, Currency-in-Circulation was only N1.4trillion.
“The proportion of currency outside banks grew from 78 per cent in 2015 to 85 per cent in 2022. As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation.
“I am not unaware of the obstacles placed on the path of innocent Nigerians by unscrupulous officials in the banking industry, entrusted with the process of implementation of the new monetary policy. I am deeply pained and sincerely sympathise with you all, over these unintended outcomes.
“To stem this tide, I have directed the CBN to deploy all legitimate resources and legal means to ensure that our citizens are adequately educated on the policy; enjoy easy access to cash withdrawal through availability of appropriate amount of currency; and ability to make deposits.
“I have similarly directed that the CBN should intensify collaboration with anti-corruption agencies, so as to ensure that any institution or person(s) found to have impeded or sabotaged the implementation should be made to bear the full weight of the law.
“I similarly consulted widely with representatives of the State Governors as well as the Council of State. Above all, as an administration that respects the rule of law, I have also noted that the subject matter is before the courts of our land and some pronouncements have been made.
“To further ease the supply pressures particularly to our citizens, I have given approval to the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023 to April 10 2023when the old N200 notes ceases to be legal tender. In line with Section 20(3) of the CBN Act 2007, all existing old N1000 and N500 notes remain redeemable at the CBN and designated points,” the president added.
To this end, the CBN had on Wednesday evening opened the portal for individuals as well as corporates who have old notes to deposit to fill up forms. On the portal which is open on cbn.gov.ng, depositors are required to fill in their Bank Verification Number (BVN), phone number, email address, bank details, address, the amount to be deposited as well as the denominations to be deposited, after which a reference number is generated.
A guideline on the depositing of the N200, N500 and N1,000 old notes commenced, and on Wednesday’s afternoon, the CBN portal remained open with instructions that customers upon completion of the form and generating a code, should go and deposit the old notes at their respective banks.
To encourage deposit of old notes, deposit money banks had sent out messages to their customers requesting that they deposit their old notes as they would remain open all through the weekend to receive old notes.
Confusion, however, set in on Friday after the CBN issued a statement that it had not authorised banks to receive the old notes on its behalf.
According to the statement issued by the director, Corporate Communications of the CBN, Osita Nwanisobi, in line with Mr. President’s broadcast of February 16, 2023, “the CBN has been directed to ONLY reissue and recirculate the old N200 banknotes and this is expected to circulate as legal tender for 60 days up to April 10, 2023.
the public should therefore disregard any message and/or information not formally released by the Central Bank of Nigeria on this subject.”
Despite the statement which ensued from the apex bank, commercial banks across the country continued to receive the old notes as the CBN portal for depositing the old notes referred customers who had filled the forms to go onward to their respective banks to deposit the old notes.
Meanwhile, the Chartered Institute of Bankers of Nigeria (CIBN) has continued to call for peace as the cash crunch led to violence against banks. This is also as the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) had ordered banks’ staff to stay off duties, following series of attacks of banking staff and bank facilities.
President and chairman of CIBN, Ken Opara, whilst noting that the institute is liaising with the Body of Banks CEOs to address the current challenges in the country, said the safety and security of staff of banks is of paramount importance.
“Hence, where there is security challenge, the Management of banks have been empowered to take proactive measures to close their operations in such location and inform the Central Bank of Nigeria.
“Therefore, the safety concerns being expressed in various quarters are already being addressed. Banks will continue to ensure that adequate security are in place to protect staff and customers whilst safeguarding their assets in contending with the current challenge.
“Consequently, we appeal to the general public to remain calm and eschew any act of violence as the banking industry remain resolute and committed to finding ways to address all the related issues,” he stressed.
The scenario may continue in the new week as the banking customers are actually confused on what to believe and what to do to change their old Naira notes.
