New Naira Notes Not Targeted At The Poor – President Muhammadu Buhari

 

Following widespread confusion and frustration over inability to access the new naira notes recently injected into the economy by the Central Bank of Nigeria amid the impending deadline for the phase out of the old notes, President Muhammadu Buhari yesterday said government would ensure that citizens are unharmed in their businesses and no disruption is caused to the supply chain arising from the swap.

The apex bank fixed January 31 as terminal date for the old notes, but feelers from across the country in the past few days indicated that many Nigerians have yet to access the new notes, thereby heightening tension among citizens.

Many have expressed disappointment over their inability to get the new currency from banks, ATMs or POS locations, even as the old notes are already being rejected by certain classes of people including restaurant operators, transporters and hoteliers, among others. This has led to long queues of people waiting for many hours for their turn to deposit the old notes and get new ones in the few banks or ATM points that have them in several major towns in the country, triggering public anger and criticism, as well as calls for extension of the deadline from many sections in the country.

But reacting to reports of the current development, President Muhammadu Buhari yesterday reiterated that the currency change was not aimed at people at the lower echelon of society, but those hoarding illicit funds, and that it had become necessary to prevent counterfeits, corruption and terrorist funding.

This, according to a statement by presidential spokesman, Garba Shehu, the president assured, would stabilise and strengthen the national economy.

While noting that the poorest section of society was facing hardship as they often keep hard cash at home for various expenses, President Buhari gave strong assurances that the government would not leave them to their own fate.

He said measures by the Central Bank and all commercial banks were underway to speed up distribution of the new notes and do all necessary to forestall cash squeeze and chaos.

The apex bank has remained unequivocal about its decision that only the redesigned currency would be legal tender after January 31. But there are growing calls for extension or moderation of the deadline by many Nigerians, including the Arewa Consultative Forum, former vice president and PDP presidential candidate Atiku Abubakar and the Nigerian Bar Association among others.

The Arewa Consultative Forum (ACF)  in a statement issued by its secretary general, Aliyu Murtala, urged the CBN to consider an extension of the deadline.

The forum said; “As the deadline for the exchange expires this Tuesday, we are afraid that majority of our people in the rural areas are unable to change their old currencies for new ones, this is because even in the urban centers, the new notes are scarce.

“Also, where the CBN made some arrangements to facilitate such, the exercise is being challenged by numerous factors such as lack of adequate access to bank services on the part of the people, cumbersome exchange procedure, etc.

“This has subjected innocent people to hardships, uncertainty and anxiety. We are of the strong belief that ordinary people especially in the North will lose their hard-earned money through no fault of theirs.

“Government must be sensitive to the plight of the citizens to safeguard their interests in all areas.  Insinuations by some political actors that the exercise is designed deliberately to fail, or cause chaos to sabotage the ongoing democratic process should not be allowed to be proven.

“Persons who lose their wealth through uncoordinated government policy or actions are likely to assume they have been let down by the said government.”

 

Atiku Says Deadline Will Cause Nigerians Heavy Discomfort

The presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, appealed to the CBN for a “slight extension” of the January 31 deadline in a video posted on Twitter yesterday, saying the large, unbanked population, especially in the rural areas, would find it almost impossible to exchange their old banknotes for the redesigned currency within the stipulated time.

He said; “I’m aware of the challenges farmers and others like artisans in remote areas of the country go through in moving cash from remote areas to commercial banks for conversion. On this note, I’m compelled to align my position with the upsurge of demands for a slight extension of the monetary conversion policy.

“The January 31st deadline is certainly going to cause heavy discomfort on our people and it will be magnanimous on the part of government and regulatory agency to ease the burden on the people in the public interest,” he said.

The former Vice President noted that though the exercise is not strange to Nigeria, a great number of Nigerians, out of good conscience, had expressed apprehension about how the deadline will make life more difficult for a large number of Nigerians.

 

NBA Says CBN Under Should Redeem Old Notes After January 31

The Nigerian Bar Association (NBA) in its reaction said the CBN is under statutory obligation to redeem the old notes after the deadline.

NBA president, Yakubu Maikyau (SAN) yesterday in a letter to the CBN Governor Godwin Emefiele, according to a statement by the NBA’s national publicity secretary, Akorede Lawal, expressed concern about the fate of Nigerians with the old currency beyond the deadline, saying, “The law is clear on this issue.”

He cited Section 20 (3) of the CBN Act which he said provides that notwithstanding Sub-sections (1) and (2) of this section, the bank shall have power, if directed to do so by the President and after giving reasonable notice in that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin with respect to which a notice has been given under this Sub-section, shall, on the expiration of the notice, cease to be legal tender, but, subject to section 22 of this Act, shall be redeemed by the Bank upon demand.”

The NBA President noted that “any person who shall be in possession of the old notes which have ceased to be legal tender by 31 January 2023 is at liberty to approach the CBN and demand for the redemption of the notes and the CBN is under statutory obligation to ‘redeem’ the notes.”

In view of the dearth of information in this regard, the NBA President added that “our recommendation, on this issue is that in addition to educating Nigerians on demonetisation itself, a campaign on what happens to old bank notes after 31 January should be launched so as to adequately inform the public on what to do and prevent or reverse the rising panic or agitations caused by concerns about the inability of Nigerians to swap their old notes for the new notes by 31 January.”

 

Market Women, Others Reject Old Notes In Kogi

In Kogi State, our correspondent reports that market women, shop owners and even tricycle operators within Lokoja, the capital city, were already yesterday rejecting the old naira notes.

A drama ensued when a fish seller dragged her customer because he  did not pay her with the new naira notes. The seller, Blessing, pounced on the customer after he consumed a roasted catfish.

A POS operator, Rahama Abdullahi, said she went to one of the commercial banks in the city to swap the cash she had with the new naira notes but the bank agent who was seen carrying the new notes told her that she should pay N10,000 to get the new notes.

 

She said; “I went to meet him to collect new notes from him and she asked me for how much I want to change, I told him that I wanted to change N45,000 and he said I should pay N55,000 before I could get the new notes.”

A bank customer at Maybe Avenue Calabar, Justina Asuquo, said she had no money at the moment because the old notes she had was paid into her account via a POS machine so that she could withdraw from the ATM.

But a POS operator, Mr. Sunday Akpan, stated that business is facing a downs trend due to lack of new notes as the ATM machines are paying only N20k for each withdrawal.

At  Keystone Bank along Murtala Mohammed Highway Calabar, a bank customer, Akan Umontah, said it would be difficult for her to cook a weekend soup for the family.

Residents of Ado Ekiti, the Ekiti State capital, are making efforts to swap the old naira with new ones and the same time trying to beat the deadline.

A POS operator, Micheal Adelaja, said he was still receiving and transferring old and new naira notes for his customers.

He said, “I still have about N50,000  and I will go to the bank to deposit whatever I received in addition to before 2pm later today.

“I will continue receiving old naira notes till around 3pm on Monday knowing fully well that the CBN announced deadline is Tuesday, January 31”.

Another POS operator, Chuks Obi said he had since stopped receiving the old notes.

“I don’t want to go through the stress of going to the bank to deposit the old naira notes where crowds will be to do same thing. To even withstand the deadline day rush is another thing entirely,” he said.

Investigation conducted by LEADERSHIP WEEKEND in Osogbo yesterday revealed that the new currency notes were scarce for business transactions.

The non-availability of the new notes continued to generate conflicts among traders and their customers as well as drivers and commuters who are refusing the old currency for transactions.

Many POS operators don’t have the new currency while some of them who opened for business only received old notes for deposit at banks at a token.

In Osogbo, 90 percent of POS operators have about 80 percent of available currency for transactions in old notes while commercial drivers have more than 70 percent available cash at hand in old notes.

A POS operator in Agunbelewo area of Osogbo, Osun State capital, Lukman Ademiju, appealed to the government to prevail on the Central Bank of Nigeria CBN to extend the expiry date for the old notes.

 

Call Girls Reject Old Notes In Yobe

Some call girls  in Damaturu town, the Yobe State capital, are reported to be rejecting  the old notes, lamenting poor circulation of the new notes.

Our correspondent who interacted with some of them gathered that there is scarcity of the new notes in the town.

Narrating her experience, a girl said she deposited her entire savings into her bank account hoping to withdraw the new naira for two days but all to no avail.

She said the few banks within the state capital stopped paying through the ATM, making it difficult for people to access money for their immediate needs.

 

Customers Threaten Banks In Oyo

Bank customers in Oyo State have threatened to shut down  and destroy any bank which refuses to collect old naira notes after the deadline .

The customers including traders, artisans and other business operators made the threat after all attempts to collect money from the ATMs failed.

It was gathered that there was an avalanche of complaints from traders , artisans and others on the unavailability of the new naira notes in the banks.

One of the of major banks in the city confirmed their claims, as the operators complained of not having the new naira notes in their vaults.

Some traders warned that if the government is not careful, there would be violence and anarchy after the January 31 deadline.

A middle age trader who refused to disclose his name threatened to lead mass protest to any bank who refused to collect old  and dispense new notes after the deadline .

In Minna, Niger State, old notes are only accepted in fuel stations, but most eateries and popular supermarkets had bold inscriptions that they were not accepting old naira notes.

Most POs are not operating because most the customers desire new notes which are not available.

There were long queues in a few banks where the ATMs were dispensing the new notes while most of the customers decried the suffering they had gone through for hours to get the cash from the machines.

A customer Haruna Ahmed said; “We have been here since morning and this is about 2 pm and no cash.”

There is scarcity of the new notes in Jos, the Plateau State capital as bank customers, especially those who want to get the new notes through ATMs were seen on long queues in banks yesterday.

At Ecobank and Zenith Bank in Bukuru, our correspondent saw crowds at the gates trying to gain access to their ATM points for transaction.

Some POS operators told our correspondent that they could not give what they did not have.

Operators, Transporters Still Accepting Old Notes In Rivers POS

Point of Sale (POS) operators and transporters in Rivers State are still accepting old naira notes in parts of Rivers State.

Also, all the banks in Port Harcourt, the state capital were open yesterday to enable residents exchange their old naira notes.

Speaking with LEADERSHIP Sunday, a POS operator, who refused to disclose her name said their boss ordered them to stop receiving old naira notes from yesterday.

She however said she had less than 15 percent of old naira notes in the total amount in her POS wallet.

 

We Are In Big Problems, Say Customers In Kaduna

In Kaduna, some POS operators said they had stopped collecting old naira notes.

A POS operator, Chinedu IKe at Halima junction Ungwuan Sunday Kaduna said: “I don’t collect old naira notes. I don’t have time to go to bank to suffer before deposit. No new naira notes no transactions here in my shop. I went and withdrew new naira notes and I am using the new notes”

 

One of the bank customers, Charles Asom at FCMB Sabon Tasha bridge, Kaduna lamented: “It’s not easy to deposit old naira notes. Some of us don’t have time to come to bank to deposit and POS operators are not collecting old notes. We are really in a big problem.”

 

Bank customers, POS operators and transporters are still using old naira notes in Ilorin, Kwara State.

 

A POS operator along Murtala Mohammed road, Ilorin, Kafayat Shehu said she still has bulk of old naira notes in her possession.

 

“I still have old naira notes. This is what we get from the banks. We get only little amount of the new naira notes,” she said.

 

A commercial driver, Mal. Ganiyu Adigbongbo of Gambari , Ilorin unit of National Union of Road Transport Workers (NURTW), said transporters still use old naira notes because, ” this is what the committers pay us with.”

 

Customers in Enugu expressed concern over their inability to get the new naira notes from banks.

 

Some of them who  spoke to our correspondent in Enugu said most of the banks have stopped paying the new notes to them , adding that they had instructed everybody to withdraw from the ATMs.

 

A POS operator, Ikenna Okoli, said he  made attempts for many days to withdraw money from the ATMs but to no avail.

 

In Gombe State, many residents said the new currency was not abundantly available in the state.

 

This is even as people who go to bank to get the new notes have to wait in long queues for hours before they exchange their monies.

 

A resident of the state Fatima Usman, said she went to a bank and waited on queue for four consecutive days but could not change her money due to the huge crowd trooping there to replace their currencies.

 

 

 

The emir of Dukku in the state Alhaji Haruna Abdulkadir Rashid said due to the naira redesigning, there is inflation in the price of goods in the markets in his community.

 

 

 

Kebbi Traders To Shut Shops

 

Traders in Birnin Kebbi in Kebbi State have threatened to  close their shops due to the new naira notes in banks.

 

Chairman of the traders association in  the state,  Umaru Danguwa Gwadangaji,  said in an interview with journalists yesterday that there was no option than to close shops since there were no new notes even in the banks.

 

“If this situation persists we will force our members in the markets and  of other places to close their shops,” he said.

 

Tension in Imo State

 

The exchange of the old naira notes for the new notes appears to have created tension and anxiety among the populace in Imo State.

 

A POS operator, Uche Uwakwe expressed astonishment on the process.

 

According to him, the new notes are not readily available. He said all efforts to obtain the new notes from the banks to satisfy his customers proved abortive.

 

He stressed that the ATMs were empty and the ones paying still paid the old notes and submitted that he may likely stop operation until the situation normalises.

 

In Owerri, the Imo State capital, crowds have besieged banks to pay in the old notes even as the queue extends to the main road.

 

Access Bank on Wetheral Road and Bank Road had extremely long queues of people waiting to pay in the old notes when our correspondent visited.

 

Fidelity Bank on Friday still paid old notes to customers at the world Bank branch, an action that drew the ire of several customers.

 

A visit to World Bank Market showed that traders accepted only new notes or transfer to their accounts.

 

Big supermarkets like Market Square, Priceless Stores put up notices refusing the old notes.