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•Divergent views trail Buhari’s speech as long queues persist
From Uche Usim, (Abuja), Chinwendu Obienyi, Tony Osauzo and Ighomuaye Lucky, (Benin) Obinna Odogwu, Awka
As a fallout to Wednesday’s torching of the property of some commercial banks in violent protests in some parts of the country, security has been beefed up in financial institutions in Abuja to ensure their safe and uninterrupted operations.
Daily Sun observed that banks’ branches had additional armed security personnel to support those sourced from private security firms to forestall the breakdown of law and order.
At UBA, Access and FCMB banks in Wuse, crowd of customers milled around various Automated Teller Machines (ATMs) dispensing new notes.
Customers also queued to get the N20,000 approved for disbursement across the counter by the CBN.
Security access was more stringent though the crowds were generally calm.
When Daily Sun got to the First Bank branch in the Central Business District by 8am, the number of those for waiting to withdraw cash had swelled to 278, as customers picked up numbers on arrival. This was confirmed by a depositor, Christopher Abe.
He said: “I got here at about 7:30am and I was given number 253. The ATM is not dispensing yet but they said cash was being awaited. I can’t wait because I have to be at work. I also went to the ATM queue and I was number 198. This cash scarcity nightmare is not funny at all. Anarchy looms”, he lamented.
However, demand for new naira notes is expected to ease as President Muhammadu Buhari, on Thursday in a nationwide broadcast, ordered the Central Bank of Nigeria CBN to return the old N200 notes into circulation till April 10.
The old and new N200 notes will operate side by side until April 10, while the old N500 and N1,000 notes have ceased to be legal tender since February 10.
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 upon meeting set criteria.
President Buhari emphasised that strengthening the Nigerian economy, enhancing security and blockage of leakages associated with illicit financial flows remain one of the reasons for redesigning the naira.
He warned banks and players in the financial ecosystem that are trying to derail the cashless policy initiative to turn a new leaf or be made to bear the full weight of the law.
“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 percentin 2015 to 85percent 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”, he said.
Meanwhile following President Muhammadu Buhari’s annoucement on the usage of old notes on Thursday, some economic experts have described the development as a sad one for the economy while others have hailed the President and the Central Bank of Nigeria (CBN) for not succumbing to pressure mounted by some state governors.
This was even as long queues of customers were still sighted in the banking halls and ATM points across the Lagos metropolis.
Buhari did not address the Supreme Court ruling while the CBN is also yet to respond to the Court’s decisions.
With this together with Buhari’s speech, Nigerians face an unprecedented cash crunch less than two weeks to the nation’s general elections. The crisis has plunged many citizens and their businesses into hardships, with many finding it extremely difficult to meet their basic daily needs.
Reacting to the Buhari’s speech, Nneka Ndubusi, an economic expert, said the President’s speech was diplomatic.
“I just think the President is trying to be diplomatic. He is trying to appease Nigerians as well as the governors. The Supreme Court gave its judgement as at weeks back, the Lagos state government I learnt has told citizens to spend their old Naira notes and now this speech by Mr President has really thrown the economy into chaos. The new notes are being hoarded and so there is a difference between making the new notes accessible and then not making us to be confused.
I really like the cashless policy but I just feel it came at the wrong time and the implementation did not yield fruits. The CBN Governor has said about 20 per cent is still outside the banking system, my concern is how they can be able to get the old notes. I also feel that Mr President should have come out a bit earlier to address the issue but I also think he is trying to create a system where money cannot be used to buy votes ahead of the elections”, Ndubusi said.
According to her, “this will cause chaos but Nigerians are strong people. If we can adjust during the recessions, I also think we can adjust to this pronouncement by Mr President”
In Edo State, Governor, Godwin Obaseki, yesterday, met with the Association of Mobile Money and Bank Agents of Nigeria (AMMBAN) to discuss ways to ease the plights of Edo residents following attacks on several banking facilities across the state that led to little or no services by banks.
Obaseki, while addressing members of the association in Benin City, said the state government was committed to working with the Central Bank of Nigeria (CBN) to give support for the disbursement of cash through Point of Sale (PoS) operators in marketplaces so as to reduce sufferings of the people prior to when banks reopen.
The governor, who noted that the Wednesday’s incident has political undertone and beyond anger over rejection of old naira notes or scarcity of new ones however, said the perpetrators of the act would be apprehended as there are footages currently being investigated by the security agencies.
“We know the CBN has always had this interaction with you, but as a state government, we want to see how we can help you facilitate further the interaction and also reach our people to calm them and reduce their sufferings.
Earlier, Osaro Ekhator, chairman of the association, claimed they are the most affected by the incident as their livelihoods and shops were burnt across Edo and Delta State
For his part Renner Jumbo, Branch Controller, CBN, Benin branch, said the agents will be used as a tool as banks will not be opening soon because of their facilities that were damaged.
Following the violent destruction of banks facilities, Point of Sale (PoS) centres, security personnel have been drafted to protect the Central Bank of Nigeria (CBN) facility in Edo State. Commercial banks in Edo also shutdown operations across the state yesterday due to attacks on their facilities. Four persons were reported to have lost their lives during the protest in Benin.
A bank customer who was seen standing at the Access Bank said that she was at the bank to see if it could open to customers.
In Awka, the Anambra State capital, none of the commercial banks along the Awka – Onitsha Expressway was dispensing cash when Daily Sun visited.
From the popular UNIZIK Junction to the equally Aroma Junction, there are about six banks lined up along the road but none of them was dispensing cash through their various Automated Teller Machines (ATMs).
When the reporter visited some of the banks, especially those at the Regina Caeli axis of the expressway, many customers were seen at the ATM galleries, waiting for the banks to load the ATMs to enable them withdraw their money.
None of the banks was also dispensing the old N200 note as directed by President Muhammadu Buhari on Thursday morning.
