Millions of Nigerians are being refused access to their money, which has increased tension throughout the nation. Thousands of households are writhing in anguish due to a lack of cash, even as many have run out of necessary goods. The sensations range from the agony of a failed electronic money transfer to the agony of waiting interminably in line to use an Automated Teller Machine (ATM). The traditional cash stations (bank tellers) have stopped operating in the midst of such difficulty because they are out of both old and new notes of currency. Top bankers informed The Guardian in separate conversations that they had suspended the cash transfers because they were concerned about possible sanctions from the Central Bank of Nigeria (CBN).
Fears that the old naira notes wouldn’t be redeemable after the February 10 deadline for the naira swap policy expired were allayed by CBN Governor Godwin Emefiele yesterday, ending days of the standoff with the House of Representatives during which the Speaker, Femi Gbajabiamila, threatened to issue an arrest warrant on the head of the central bank. He made a commitment to follow Sections 20, Subsections 3, 4, and 5 of the CBN Act when he testified before the Ado Doguwa-led House of Representatives ad hoc committee.
Nigerians would be able to deposit their old notes even after the deadline.
The head of the CBN told Nigerians that even after the date set forth in the CBN Act, they would be able to deposit their old naira notes with the top bank. CBN officials joined Emefiele in his promise to ensure fair and open distribution of the new naira notes to all banking locations around the nation. He was pleased with how enthusiastic Nigerians have been about the new naira and the swap program so far, but he disapproved of bank personnel who were hoarding the new notes in an improper manner.
Referring to a viral video on social media showing bundles of the new notes being sprayed at a party, he reassured the MPs that he had met with the chiefs of the deposit banks on Sunday to rectify the anomaly and ensure that the new notes were available in ATMs all throughout the nation. He assured the lawmakers that the CBN is already working with the Nigerian Finance Intelligence Unit (NFIU), the Independent Corrupt Practices and other Related Offences Commission (ICPC), the Economic and Financial Crimes Commission (EFCC), and other security agencies to ensure the smooth implementation of the naira swap policy.
The naira swap policy is a well-thought out policy.
In response, Doguwa called the naira exchange strategy a well-thought-out policy and said it is regrettable that its intention was muddled as a result of a communication gap between the CBN officials and the National Assembly. He commended Emefiele in particular for his promise to uphold the CBN Act on the acceptance of old naira notes after the deadline had passed. As a result, he gave the CBN president instructions to provide a weekly report on the distribution of new notes and the acceptance of old notes by commercial banks and other banking institutions across the nation.
About the motion on the faulty implementation of the naira swap program, Sada Soli (APC, Katsina) begged the CBN to raise the N20,000 withdrawal limit for the new notes at ATMs. The top bank revealed Monday that a commercial bank in Ogun State had mismanaged N4 million in fresh notes. Additionally, it charged that commercial banks had obstructed the CBN’s efforts to distribute the new notes. While leading a team on the monitoring exercise in Ogun, Kayode Makinde, Deputy Director, Banking Supervision Department, CBN Lagos, revealed this to newsmen. According to Makinde, this week would mark the third week of the monitoring operation in the state to make sure that the CBN’s instructions regarding the issuance of fresh notes are followed.
Notes would be redeemed at the CBN after the deadline.
Osita Nwanisobi, Director of the Corporate Communications Department of CBN, revealed that the old notes would cease to be legal money after February 10 and cannot be used for any type of transaction after that date in an interview with newsmen in Abuja. After the deadline, Nigerians would only be able to exchange their naira for face value at the CBN and not at commercial banks, according to Nwanisobi. The admission would be contingent on fulfilling certain requirements, he noted. Nwanisobi cited examples from other regions to illustrate how banknotes that are no longer legal tender can only be redeemed on demand by the monetary authorities of that region, subject to any criteria and procedures that may be set forth by that Central Bank.
Related Link
YouTube: Website
Fact-Checking Tool – Snopes.com
Cash shortage slows down businesses – Tension over scarcity of cash has worsened across the country. – Express your point of view.
The cash swap from old naira note to the new one is not will thought out. This repressible action as crippled so many businesses because it led to cash shortage. Now that the deadline is still on the 10th of February CBN should endeavor to correct every anomaly in the system: from transfer to availability and easy access to the new note.
The scarcity of cash to do business and daily transactions has resulted in high tension in every part of the country. If nothing is done by CBN and the federal government it might lead to an uncontrollable chaos and we might another kind of EndSars movement.
Cash shortage definitely slows down businesses. Some businesses depend on cash flow for their business. I hope the federal government will quickly do something about the issue.
The cashless policy introduced by the federal government across the country has really have bad effect on the normal economy system because average number of the citizen doesn’t understand this and moreso the banks services is really poor which also make transaction difficult for the people.
Every section of the country is tense due to the cash shortage for business and daily operations. CBN and the federal government may cause unmanageable turmoil and another EndSars movement if they do nothing.
Truly this shortage of cash in this period have really affected my own personal business too. It’s so frustrating for you to have have and can’t access it. I hope we get pass this period quickly.
There has been an increase in tension all over Nigeria as a result of the refusal of millions of Nigerians to allow them access to their money.
Many families are in agony because they do not have enough money, and many of them have already exhausted their supplies of essential items.
The cashless policy introduce to the country as make business slow because of shortage of cash but this policy will do good for us and we will later adapt to it where everywhere is balance
Yeah… Fair and open distribution of the new naira notes to all banking locations around the nation. Disapproval of bank personnel who were hoarding the new notes in an improper manner is right but there should be another way around about it.
.
The current cash crunch has had a significant impact on not only my firm, but everyone’s. It must be quite irritating to you to be unable to use something you already possess. It is my sincere desire that this time of transition be over soon.
During separate talks, they revealed that they had decided to halt the cash transfers because they were concerned about the possibility of receiving sanctions from the Central Bank of Nigeria.
The Governor of the Central Bank of Nigeria (CBN) put to rest concerns that the old naira notes would no longer be redeemable when the deadline for the naira swap program on February 10 passed.
Numerous households are in distress due to a lack of resources, with many having run out of food and other necessities.
Cash shortage slows down businesses. This country Nigeria is full of suffering. This present government has really shown Nigerians the other side. The plan for new note is very poor.
Emefiele’s vow to ensure a fair and open issuance of the new naira notes to all banking facilities across the nation was echoed by officials from the Central Bank of Nigeria (CBN).
It’s helpful that the CBN president has instructed the bank on a weekly basis to report on the circulation of new notes and the acceptance of older notes by commercial banks and other financial institutions across the country.
To demonstrate how banknotes that are no longer considered valid tender can only be redeemed upon request by the monetary authorities of that region and are subject to any criteria and processes that may have been established by that Central Bank.
The feelings range from the misery of an unsuccessful electronic money transfer to the agony of standing in line for an automated teller machine for an eternity (ATM)
Business growth is undoubtedly slowed by cash flow issues. Some companies rely on cash flow to run their operations. I’m hoping the federal government will act promptly to address the problem.