Naira scarcity: Attacks on banks put insurance claims at over N5bn – ASSBIFI

By Joy Obakeye

The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) says the pockets of attacks on banks, financial institutions and their outlets across the country have put insurance claims at more than N5 billion.

The attacks on banks’ facilities across the country were in reaction to the hardship caused by the naira redesign policy of the Central Bank of Nigeria and the resultant scarcity of the N200, N500 and N1,000 banknotes due to the deadline imposed by the apex bank.

ASSBIFI in a statement stressed that the recent happenings show that the attacks on banks were unjustified, fueled by the lack of stakeholders engagement.

The association while briefing journalists in Lagos, maintained that the negative impact of the policy is due to the deafening silence by the authorities.

“Sadly, within weeks of implementation, the entire banking industry and workers were placed under public scrutiny and ridicule due to inciting and unbalanced reports circulated through various news and social media and leading to attacks on our members and other bank workers, and the destruction of banks’ properties. These sad incidents also amounted to personal losses by innocent Nigerians and injuries sustained by members of the public, while our colleagues in the Insurance Sector were faced with claims of more than two Billion Naira.

“During this trying period, not once was there any condemnation of these acts by bodies or individuals saddled with the responsibility of supervising or protecting the industry and its workers.”

It added that further confirmation showed that the redesigned currencies were not adequately distributed, which led to public places and merchants demanding for cash in transactions, stressing that efforts should have gone into ensuring other payment channels were effectively utilised without challenges.

“Since the Supreme Court order of 8 Feb. 2023 and the outcome of the National Council of State meeting held on Friday 10 Feb. 2023, the CBN has not provided any direction to banks or the public despite the public statements made by the Attorney General of the Federation and some members of the Council of State.

“Our fear of the impact of this deafening silence from the authorities came to reality on Wednesday 15 Feb. 2023 when disgruntled citizens again went on rampage in Edo, Delta, Ogun, and Oyo States attacking and burning down banks and other institutions. This we believe was also fueled by the disappointing comments of some high-profile individuals in positions of authority who should have joined us in seeking solutions to the problem rather than further heating up an already volatile polity and knowing that banks are regulated by the CBN and not by any agencies of the various tiers of government.

“This was further re-echoed in the President’s address to the nation when he put the problem at the doorsteps of banks,” the union stated.

“We sympathize with our colleagues and employers in various banks whose branches were attacked, damaged, or burnt along with their equipment.

“The much awaited but belated National address by the President is a clear indication that the funds released to the public was not sufficient and we are amazed that in the same breath, bank officials have been accused of “placing obstacles in the path of innocent Nigerians”.

The union stressed the need for a full engagement of “all relevant stakeholders in immediately looking beyond printing new notes as ordered by the council of state, and fashioning out immediate ways to enhance alternative means of transactions that will be devoid of failures and restore confidence in the cashless system.”

It also emphasized the need to Increase awareness at all levels to discourage panic withdrawal and hoarding of the new currency while providing industry wide incentives to encourage the transition from cash transactions.

ASSBIFI also recommended that the authorities “monitor and sanction outlets that have been verified to shut down the use of alternative means of payments, demanding for cash which find their way into the hands of currency traders, while also monitoring the abuse of the currency at public events, and apply sanctions as prescribed in the CBN act.”

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The association main trained that despite the “losses in terms of lives, damaged properties, and looming job insecurity due to the destruction of business premises within our industry, and the impact on Insurance Organizations, we remain committed to go the extra mile in providing service to our customers in safe and secure environments.”

ASSBIFI urged the public to desist from threatening or attacking its members, or destroying our properties, while also challenging the “news media to be investigative, verify and probe their information so that the nation, and the world will know the truth. We are in a critical period of our National development, and all hands must be on deck to bring Nigeria out of the woods. Fake and deceptive information must be checked at a time like this.