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By Chinelo Obogo, Tunde Thomas, Vincent Kalu, Chiwendu Obienyi and Lateef Dada
With barely nine days left for the deadline issued by the Central Bank of Nigeria (CBN) for old naira notes to go out of circulation to elapse, many Nigerians have expressed frustration over the inadequate supply of the new notes for spending.
This is even as the old notes are still being dispensed by cashiers in banking halls, Automated Teller Machines (ATMs) and Point of Sale (PoS) operators.
The CBN, in a recent statement, mandated banks to load their ATMs with only new notes to ensure that it circulates across the country ahead of the January 31, 2023, deadline when the old notes will no longer be legal tender.
But, despite orders from the apex body, it has been observed that some ATMs are still dispensing old notes, while others have started dispensing new notes. This has led to calls to extend the deadline to allow the circulation of the new notes. However, a look at the CBN’s website shows that there are just nine days left until the deadline of January 31, 2023.
When Saturday Sun visited some banks, ATMs and PoS centres in Ajah, Marina, Oke-Afa Ejigbo, Okota and Oshodi, all in Lagos, a combination of old naira and new notes were being dispensed. A senior management staff at one of the banks who didn’t wish to be named, told Saturday Sun that the newly redesigned notes (N200, N500 and N1, 000) have been in inadequate supply; hence, the reason for giving customers a mixture of the old notes and new notes.
“The CBN issued a circular to all banks warning them not to load their ATMs with old notes, lest there would be sanctions, but some banks still give out old notes, because the new notes are inadequate. Anywhere you don’t see new notes, it means that either the new notes that particular branch has have been exhausted or the supply for the day has not reached them. It is due to scarcity that you notice that most of the ATMs are empty.
“I just went to make inquiries at one of our ATMs at Mobolaji Bank Anthony to know why our ATM was empty, and they told me that our team sent them a message that they were on their way with the new notes. We are usually very careful not to flout the directives of CBN, because it is currently going round to inspect banks, and any bank that defaults will be heavily fined.
“Usually, every bank has a Cash Management Unit whose job is to evacuate cash and receive cash from the CBN. This unit is responsible for mopping up old notes from every branch, then collate and send to the CBN. When the CBN gives the unit new notes, each branch would have to apply for the amount of notes they need for operation for the day.
“Okota branch may request for N50 million, while Ejigbo branch may request for N100m. Customers bring in old notes every day, and, as they bring it in, we mop it up and evacuate to the CBN. The problem is that most banks still don’t get sufficient amounts of new notes from the CBN.
“There are some banks that will take the risk and mix new and old notes for their customers, but our bank is very compliant. We don’t take such risks. So, if our ATMs are empty, it is because we have run out of new notes,” the bank official said.
Some PoS operators also confirmed to Saturday Sun that new naira notes were still scarce commodities in Nigeria, wondering how the new notes would be used across Nigeria before the January 31 deadline for the withdrawal of the old notes.
A trader, Ishaya Saliu, expressed his anger at the bank, stating that he had constantly complained that he had access to the new note once, unlike other Nigerians.
“The annoying thing here is that, ever since the new notes came out, I have only touched the N1, 000 note once, and that was precisely December 18, 2022. Since then, anytime I get to the ATM to withdraw, it is always giving me old notes. When I complain at the bank, the staff will say it is because they do not have an adequate supply of the new notes, and that it will take time for that to happen,” he said.
At a sensitisation programme at Ayegbaju market, Osogbo, Osun State on Friday, the Deputy Director, CBN, Adeleke Ademuyiwa, expressed surprise that the banks have refused to take the new notes from the CBN.
He disclosed that the CBN has provided enough notes to make the new naira available but regretted that some banks have refused to pick them.
“As of today, the CBN has printed enough N200, N500, and N1,000 notes but what we discovered is that most of the banks that are supposed to collect the monies have not collected them.
“When we discovered that, we put a sanction that a bank is to pay N1 million per box in a day. So it is in the number of days they refused to collect it. We have also mandated all the banks to put new naira notes in their ATMs all over Nigeria so that people will have access to these new naira notes, “he said.
The Director of Corporate Communication, CBN, Osita Nwanisobi, said adequate plans had been made to increase the circulation of the new notes, adding that complaints that banks didn’t have enough new notes were false.
To resolve the issue of scarcity of new notes, organisations, like Afenifere, Ohanaeze Ndigbo, Yoruba Council of Elders (YCE) and the Middle Belt Forum (MBF), have appealed to the CBN to extend the deadline for the change of the old naira notes because of the difficulties people are having in getting the new ones.
Ohanaeze spokesman, Alex Ogbonna, said history might be repeating itself. According to him, in 1984, when President Muhammadu Buhari, as a military head of state, changed the national currency, it caused austerity and hardship, because the new notes weren’t in circulation. “We are appealing to the CBN to extend the deadline to a date they think they can implement it without people passing through stress,” he said.
Similarly, the MBF President, Dr. Bitrus Pogu, said the banks were not hoarding the money, stressing they were not just available, and urged the CBN to make the new notes available to the banks.
Afenifere also appealed for an extension of the deadline, with its spokesperson, Jare Ajayi, saying that the pains Nigerians were going through while trying to exchange their old notes for new ones were very unfortunate.
He said it was very clear that the new notes were not available at the banks and that even the ATM machines were still dispensing mostly old notes.
“The CBN should come up with a workable idea that will make it easier for Nigerians to exchange their old notes for new ones. The present situation is unacceptable. To make the exercise workable, the CBN should extend the deadline for at least two to four more weeks.
General Secretary of YCE, Dr. Kunle Olajide, urged the CBN to extend the period to exchange currency notes.
President of Arewa Youths Consultative Forum (AYCF), Yerima Shetimaalso said the CBN should extend the exercise “to save Nigerians from the present situation.”
