The Chartered Institute of Bankers of Nigeria (CIBN) asserted that the banking industry in Nigeria is not under severe stress. The rumor of the Nigerian banking industry being under severe stress is generated from the current crisis challenging the country’s financial sector as a result of the naira redesign policy. According to the CIBN, the banking industry is resilient, focused and committed to offering solutions to challenges in the sector that grew from Nigerians’ contention with cash crunch.
President of CIBN, Dr. Ken Opara, in a statement on February 13, 2023, affirmed the industry’s commitment to enforce normalcy in the banking system. A week ago, there was a rumor of the Central Bank of Nigeria (CBN) working towards stopping the operations of some commercial banks. This rumor caused panic for depositors until a disclaimer was issued by the Supreme Court of Nigeria. The president debunked the rumor of the apex bank’s incapacity to print and circulate the new naira notes.
Furious citizens attacked banks and vandalized ATMs.
While the Chartered Institute of Bankers of Nigeria (CIBN) debunked the rumor of shortage of printing materials for the new naira notes, the Nigerian Security Printing and Minting (NSPM) Company also falsified the story, regarding it as baseless and misleading. NSPM assured Nigerians of the effective arrangement it has made to relentlessly print redesigned naira notes and other denominations that do not fall under the naira redesign policy. The public is therefore required to disregard rumors concerning the banking industry.
The industry has been said to be working tirelessly to debunk rumors and show commitment to the public. The enforcement of the naira swap policy has caused rivalry between banks and a good number of citizens owing to the CBN’s allegation of banks refusing to dispense the new naira notes. The inability to receive cash after depositing old naira notes in the bank caused desperation in the public and has made furious citizens attack some banks, vandalizing ATMs.
Kaduna, Kogi and Zamfara States sued the CBN to court.
Additionally, an emergency meeting prompted by the public outcry was held by CBN Governor, Godwin Emefiele and President Muhammadu Buhari. The result of the meeting moved the earlier sanctioned January 31 deadline to February 10 for expiration of old naira notes. Varieties of public responses accompanied the naira swap policy with inclusion of the CBN’s plan to shut down some banks. A week before, Kaduna, Kogi and Zamfara States sued the Central Bank of Nigeria to court with a request that it readjusts its policy, allowing both the old and new naira notes to be legal tender.
Following the lawsuit, the Supreme Court issued an Ex Parte order to stop the CBN from enforcing its deadline of February 10. However, the apex bank stuck by its own rule, disregarding the apex court’s ruling. The CBN Governor, on February 14, stated that given the improvement of the situation, there is no need to adjust the deadline. The implementation of over-the-counter payments to replace ATM disbursements has brought about a significant calm to the situation.
FG disregarded the ruling of the Supreme Court.
Godwin Emefiele, during a visit to the Ministry of Foreign Affairs for a discussion concerning the monetary and redesign policy, affirmed that the CBN would not be considering an adjustment of the February 10 deadline. Contrary to the ruling of the Supreme Court – which restricted the Federal Government and the Central Bank of Nigeria (CBN) from banning the old naira notes – President Muhammadu Buhari, in a national broadcast, ordered that the old 1000 and 500 notes cease to be legal tender.
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FG bans old 1000 and 500 naira notes – The CIBN debunks rumor concerning the Nigerian banking industry. – Express your point of view.
The issue of money redesign and withdrawal limit has cause allot of uprising in the country and everyone know that the banking industry is really disturbed in this situation.
The old 500 and 1000 naira notes are now banned. It cannot be used as medium of exchange of exchange anymore. I just hope the new notes are made available.
The financial sector strategy of the naira redesign policy is very poor. How can you old noted when the new note hasn’t gone into circulation? I believe they should be committed to offer better solutions to these challenges and not add to the disaster on ground.
Redesign of the note really cause a lot of issue that make everywhere in the country hard 1000 and 500 are ban now we cannot spend it soon 200 will ban also when it reach extended date, redesign of the note is not plan well which make things hard for people in the country
The CIBN debunks rumor concerning the Nigerian banking industry. Any way, this country Nigeria has really failed in so many aspects. They believe that theme can do anything they like. God they
The Chartered Institute of Bankers of Nigeria (CIBN) has been able to ale the worries of most Nigerians by debunking the news of banks shutting down due to stress, no paper to print new naira note and acceptance of old naira note.
We can’t use our 1,000s and 500s right now, and we won’t be able to until their extended expiration dates pass. The redesign of the notes wasn’t thought through very well, and as a result, people all around the country are having a difficult time.
There has been a lot of unrest in the country over the reorganization of currency and the withdrawal limits, and everyone is aware that this has greatly rattled the financial business.
The Chartered Institute of Bankers of Nigeria (CIBN) has allayed the concerns of most Nigerians by dispelling rumors of bank closures caused by stress, a lack of paper to manufacture new Naira notes, and the acceptance of old Naira notes.
I concur with the assertion made by the Chartered Institute of Bankers of Nigeria (CIBN) that the banking industry in Nigeria is not experiencing serious stress at this time.
The current problem confronting the nation’s financial sector is the source of the widespread belief that Nigeria’s banking industry is under significant stress.
It’s encouraging to see that the banking industry is resilient, focused, and devoted to finding answers to the problems that have arisen as a result of Nigerians’ frustration with the cash constraint.
there was a rumor of the Central Bank of Nigeria (CBN) working towards stopping the operations of some commercial banks.
It’s crazy that some states took the Central Bank of Nigeria to court to demand that it change its policy and make both the old and new naira notes acceptable forms of payment.
The difficulty of the public to obtain cash after depositing old naira notes in banks generated widespread desperation, and as a result, citizens have become enraged to the point that they have attacked certain banks and vandalized ATMs.
The introduction of payments made over the counter as an alternative to cash withdrawals from ATMs has significantly contributed to the improvement in the situation’s level of composure.
Due to public desperation brought on by the inability to withdraw money after putting old naira notes in the bank, angry residents have attacked certain banks and vandalized ATMs.
The majority of Nigerians’ worries have been allayed by the Chartered Institute of Bankers of Nigeria (CIBN), which has dispelled claims that banks may close due to stress, a scarcity of paper to print new Naira notes, and the acceptance of old Naira notes.
The Chartered Institute of Bankers of Nigeria (CIBN) has been able to clear the air on the rumors going about that the banks are rejecting the old 500 and 1000 note and that banks want to go on strike.