Why CBN may extend deadline to phase-out old naira notes

*As Nigerians lament over scarcity of the new notes

By Chukwuemeke Iwelunmo

There are indications that the Central Bank of Nigeria (CBN) may extend the deadline set to phase-out some denominations of the nation’s currency, as the general public found it difficult to access the redesigned notes.

The Central bank had released the newly redesigned naira notes to the public since December 15 2022, but despite the assurance by the apex bank that all banks across the country have received the new notes, Nigerians still found it difficult to access the new notes.

For instance, The Daily Times checks showed that Lagosians are apprehensive over the inability of banks to inject new currency notes into the system as the deadline for transactions with the old currency draws closer.

The Central Bank had given Nigerians till January 31 that is less than two weeks to stop using the phased out currency but nearly all the commercial banks are still transacting business with the old currency notes.

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In our fact findings, it was discovered that most of the commercial banks still load their Automatic Teller Machines (ATMs) with the old notes.

A visit by our correspondent to some of the commercial banks at the local wings of the Murtala Mohammed Airport, Ikeja and some others at the Akowonjo in Dopemu area of Lagos discovered that all the banks ATMs still dispensed old Naira notes.

The situation was not different over the counters in their banking halls as old currency notes were being pushed out to customers by cashiers.

Some of the customers who spoke with The Daily Times expressed disappointment over the continued issuance of the old currency notes despite the closeness of the deadline.

Anonymous cashier in of a new generation banks at Akowonjo, told our correspondent that the bank was short of new currency notes and that they can only give out what they have.

One of the schools at Egbeda, in Alimosho area of Lagos State, has advised parents to pay their wards and children’s school fees with the new currency notes as the old notes will not be accepted.

Majority of traders have said that the new currency notes were not in circulation as expected.

While some disclosed that they have not seen it during transaction, others said they have been paid with the new currency notes on few occasions.

They however expressed fear that the deadline will not be realistic and called on the government to push the new currency notes into the system and extend the deadline for the deposit of the old currency notes.

The CBN on Tuesday, December 6, had issued a directive to commercial banks and financial institutions limiting withdrawals for individuals and corporate organisations to N100,000 and N500,000, respectively.

Addressing journalists in Daura, Emefiele said a lot of electronic channels had been put in place in 10 years since the cashless policy was launched in 2012 to aid people in conducting banking and financial service transactions in Nigeria.

He said the cashless policy was stepped down on a number of occasions to fully prepare for its implementation, to deepen payment system infrastructure in Nigeria.

“I can only just assure you that it will go round, let us just be calm. Luckily the old currency continued to be legal tender till January 31, 2023. So, I want to crack a joke, both the painted (new notes) and unpainted (old notes) will operate concurrently as a legal tender. But by January 31, the unpainted one will not be useful to you again, so please take it to your bank as quickly as possible,” he added.