By Babs Oyetoro, Seyi Odewale, Francis Ajuonuma, Olusegun Olanrewaju, (Lagos), Musa Bologi (Niger), Oludamisi Ojo (Akure), Cross Udo, and Nathaniel Zacchaeus (Abuja)

Barely five days to the deadline given by the Central Bank of Nigeria (CBN) for the total withdrawal of the old currency in circulation, Nigerians are still grappling with the burden of getting the new naira notes, which are scarce in circulation.

ThisNigeria checks reveal that the new notes in circulation fall short of the demand by the customers, and as such, this has given rise to palpable fear among Nigerians who are engrossed on how to beat the deadline set by the apex bank.

Yesterday, a serving senator and former leader of the Upper Chamber of the National Assembly, Ali Ndume, raised the stakes on the currency exchange deadline date extension argument by saying that he had yet to get any of the new notes.

 

*Confusion as banks continue to give out old notes in Lagos, Osun, Niger, Ondo, other states

A visit by our correspondents yesterday to some commercial banks in mainland parts of Lagos showed that most of the ATMs had no money to dispense to the customers, thus causing more panic on whether the banks could meet the needs of their customers before the deadline.

Many customers waited endlessly with the hope that the bank officials could reload their ATMs with the new notes.

Most of the customers who spoke with our correspondents at the Ifako Gbagada area of Lagos, which had Providence Bank, Zenith Bank, Access Bank, First Bank, Ecobank, and Stanbic IBTC Bank, noted that the ATMs dispensed the new naira notes in the morning, but at 1:35 pm, they stopped operation.

A police guard at one of the banks, who spoke on anonymity revealed that the ATMs of the commercial banks in the area stopped dispensing because the banks ran out of the new naira notes.

At the Guaranty Trust Bank (GTBank), a subsidiary of Guaranty Trust Holding Company (GTCO), both in Ikoyi and Ifako-Gbagada branches in Lagos, customers were seen making frantic efforts to withdraw from the banks’ Automated Teller Machines (ATM) which were the only ones dispensing the newly-redesigned naira notes.

However, customers had to wait in long queues as many of the ATMs that were supposed to dispense cash were either temporarily out of service, or with insufficient cash.

For instance, at the Obalende branch of the bank, out of about seven machines installed to dispense, only one was active, making customers patiently queuing for their turns, one after the other.

On inquiry as to why the machines were not loaded with cash, some bank officials, who wished to be anonymous, said they had a limited quantity of the new notes at their disposal, and since the few ones had been withdrawn, they would have to wait till more supply came from their head office.

Many customers were, however, disillusioned and expressed their frustration owing to their inability to get the new notes.

It was a different story in the Ikoyi axis of Lagos Island as most of the banks visited had their ATMs dispensing the new notes, and there were no queues found in any of these banks.

This situation is not too different nationwide as customers expressed mixed feelings on the issue.

In the Osun State capital, Osogbo, residents, traders, and traders, facing problems withdrawing cash, appealed for an extension of the deadline.

Those concerned also appealed to the CBN for an extension of the time in which the old N200, N500, and N1,000 notes after which they ceased to be legal tenders in the country.

The News Agency of Nigeria (NAN) reports that the CBN had said that it was not considering an extension of time for the old currency notes to be withdrawn from circulation.

Speaking with a NAN correspondent yesterday, a cross-section of residents and traders in Osogbo complained that some banks were still dispensing the old naira notes.

They were concerned that if the new naira notes were not made available, a lot of people would be stuck with the old notes by the expiration date of the deadline.

A resident of Osogbo, Adeniji Awolola, explained that, as of yesterday, when he went to withdraw money from his bank, he was still paid with freshly-minted old N1,000 notes.

“Although their Automated Teller Machines (ATM) are dispensing the new naira notes, customers were still being paid with the old notes over the counter. My worry is, after withdrawing money for business transactions in large amounts, or being paid with the old naira notes, how will ordinary Nigerians swap the old notes with the new ones before the January 31 deadline?

“This becomes more worrisome when we take into consideration that some business owners only deal with cash. I just hope the CBN would extend the deadline, at least for a month, to enable the new notes to circulate well enough before phasing out the old notes,” he said.

Another resident, Timothy Adeoye, said his worry was for old people and those living in areas where there are no banks.

“We know that most of our old parents don’t have the luxury or strength to go to banks for transactions, so they always keep their little feeding money at home. I don’t know if enlightenment about the new Naira notes has gotten to them, but I think if the CBN will not extend the deadline, these old people should be given an exception to swap the money they have at home when they can do so,” he said.

“There is indeed a limit to how much an individual can keep at home that will not constitute money laundering, but these old people couldn’t have kept or have that kind of money at home,” he said.

Similarly, a trader at Alekuwodo Market, Osogbo, Mrs Adetutu Damola, said that a lot of her customers were still paying her with the old Naira notes and that she had only seen or received the new notes a couple of times.

“Most of us, traders, hardly have time to take money to the bank daily for deposit and we often circulate the money we have to buy more goods.

“If the CBN insists that the deadline would be January 31, it means we, too, will stop collecting the old notes a week or some days before the deadline to avoid having the old notes in our possession after the deadline.

In Niger State, commercial banks are still dispensing old notes to customers, despite several warnings by the apex bank.

This came as the banks damned the consequences of breaching the CBN directive and continued to issue old notes, due to be phased out on 31 January 2023 to customers.

The CBN had on 12 January 2023 directed that banks switch to new notes in ATM cash operations and over-the-counter to facilitate speedy circulation of the redesigned naira notes. It added that it had enough new naira notes, which had since been distributed to commercial banks for onward disbursement to their customers.

However, the situation monitored by ThisNigeria in major cities in Niger State revealed that, while new notes were being dispensed at the ATMs, the bank still issued old notes at the counter.

A customer with Zenith Bank, Lawal Ishiaku, told ThisNigeria that N20,000 was the highest amount a customer can collect through ATMs.

“I wanted to collect N100,000, but was able to collect only N20,000 at the ATM,” he said. “I was told by a bank official I could get more cash inside the bank. So, I filled out my cheque and presented it at the counter, but to my surprise, the cashier issued me N80,000, with N20,000 old notes. I asked why, and he told me that was what they had.”

The situation is the same in Bida, the second-largest town in the state. Mustapha Ndagi, a customer with First Bank, told our correspondent through the telephone that the ATMs dispensed limited cash to customers.

“Unlike two last week, the ATMs now dispense new notes, but you can’t withdraw more than N20,000. If you want to withdraw more than that it’s either you wait till the following day or go inside the bank, but you will be given together with old notes,” he said.

He accused bank officials of conniving with rich individuals in the city to deprive poor people of new notes.

In Kontagora, the hometown of the state governor, Abubakar Sani Bello, ThisNigeria learned that residents of the town have started rejecting old naira notes, despite the low circulation of the new ones within the community.

“As of last week, traders here collected old notes, but when we heard that they have stopped accepting them in Kebbi State, which we share a border with, we have no choice but to do the same,” said Awwal Suleman, a trader.

“People come here with old notes to purchase clothes from me, but I don’t accept it because nobody will accept it from me either. If you go to the banks they will tell you they don’t have new notes, so we are left with only a few in circulation.”

In Suleja, the commercial nerve centre of the state, banks experienced long queues of customers who came to exchange old naira notes for new ones.

A customer with United Bank for Africa (UBA), Hassan Musa, told our correspondent via telephone that he had been in the bank since 8am to exchange his old naira notes with new ones, but up till 2pm he could not because of a large number of customers that came for the same purpose.

He said banks ATMs now dispense new naira notes, but only N200 denomination, and a daily limit of N40,000.

In anticipation to meet the February 31 Central Bank deadline on the old and the redesigning currency notes, banks in major towns in Ondo State, including Akure, Owo, Ikare, Okitipupa, and Ore, were yesterday bombarded by customers.

ThisNigeria checks show that some of the people who came for transactions attributed their action to the insistence of the apex bank not to extend the deadline.

It was revealed that many came to deposit old notes, while some came for withdrawal.

A bank customer in Oyemekun, Akure, Sunday Dada, lamented that the new notes have not been made available in large quantities as expected, stressing that he has spent more than three hours to have some new notes.

Another customer, Jide Orimogunje noted that the situation where some bank customers would travel from Ipesi, Igashi, and Ikakumo to Ikare for banking transactions is too stressful and expensive, now that transport fare is too high due to fuel hike and scarcity in Akokoland.

Besides, Alhaji Ismaila Osho disclosed that new notes are not yet circulating as expected, calling on banks to follow CBN directives and make the new notes available.

They both condemned the current hardship as petrol is being sold for N300 per litre in most fuel stations across the state. The few stations that are selling for N250 per litre had a very long queue.

Old naira : N’Assembly orders CBN to extend deadline

 

*Extend deadline, Senate urges Emefiele

In a fresh twist yesterday, the Senate urged the CBN to extend the withdrawal date of the old naira notes from January 31 to July 31.

The Upper Chamber also urged the apex bank to open an exchange window where people that don’t have bank accounts can deposit their old notes to do so.

The senate’s resolutions were sequel to a motion by Senator Sadiq Suleiman (APC-Kwara) at yesterday’s plenary.

Moving the motion, Suleiman recalled that the Senate in its resolution on December 28, 2022, urged the CBN to extend the use of the old notes from January 31 to June 30.

He said, however, that the apex bank had insisted on terminating the use of the old naira notes by the end of January.

Suleiman lamented that there were not enough new naira notes in circulation and as such, moved that the date should be extended to July 31.

He said, “Experiences around the world have shown that such abrupt decisions, if not controlled, usually created chaos. The Senate should extend the use of the old notes to July 31.”

Supporting the motion, Senator Ibrahim Hadejia (APC-Jigawa) said the call for extension was for their constituents and not for their (lawmakers’) personal benefits. “In my constituency, no Automated Teller Machine (ATM) is dispensing the new notes.”

Similarly, Senator Adamu Aliero (PDP-Kebbi) said the policy would inflict untold hardship on people living in rural areas. “The CBN governor should be invited,” he said.

Senator Adamu Bulkachuwa (PDP-Bauchi) noted that the extension was necessary, otherwise, there would be chaos.

On her part, Senator Biodun Olujimi (PDP-Ekiti) decried that in her local government area, about 90 per cent of the people have not seen a glimpse of the new naira notes, and called on the apex bank to “look away from the elections”.

She said if the date was not extended, it would lead to collateral damage which would not augur well for the economy.

Contributing, former Senate leader, Mohammed Ndume (APC-Borno State) called on the Chamber to use its oversight responsibility on the CBN to “order the CBN governor to extend the date”.

He said the power of the Senate should not be played down calling on the senators to stand firm on the call for an extension

For Senator Sam Egwu (PDP-Ebonyi), who was the only senator who opposed the motion, “Nigerians do not have the culture of keeping their money in the bank.

“It is in Nigeria where cash is used arbitrarily; other countries use electronic means. Nigerians are just averse to change,” the former Ebonyi State governor, said.

In his remarks, Senate President, Ahmad Lawan, said most of the senatorial districts did not have banks.

He said, “In rural Nigeria, there are no banks and people transact businesses with cash more often.

“There is no doubt that we must have a window for exchange. We must have policies by the CBN to have bank branches established in rural areas. We need this extension for the most ordinary Nigerians,” Lawan said.

*No going back on Jan 31- CBN

The CBN has said its January 31, 2023 deadline for the validity of the old N200, N500, and N1,000 notes remain.

The CBN Governor, Godwin Emefiele announced this after the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja yesterday.

The CBN also raised the Monetary Policy Rate (MPR), which measures interest rate, to 17.5 percent.

According to him, kidnapping and ransom-taking have reduced since the three banknotes were redesigned.

He also said the time given for the swap of the old naira notes with new ones was enough for Nigerians to go to commercial banks and get new notes.

The CBN governor said, “I must say here that unfortunately, I don’t have good news for those who feel that we should shift the deadline. My apologies. The reason is that just like the President has said on more than two occasions and even to people privately, for us, 90 days we feel is 100 days, is enough for anyone who has money or old currency to deposit it in the bank. And we took every measure to ensure all the banks remain open to receive all old currencies.

“100 days we believe is more than adequate. We called on the banks, not only are we requesting you to extend your banking hours so that you can receive old currencies, but we are also asking you to keep your doors open on Saturdays, ladies, and gentlemen, the banks did not even have any reasons to even keep their banking halls open on Saturdays neither did they see the kind of rush that they anticipated.

“We do not see any reason to begin to talk about a shift because people could not deposit their old monies into their banks.

“There is the adequate quality of new notes available but let all know that it is a process of increasing, not producing. Our Mint is producing and we are supplying to the banks and so it will continue to circulate in the system.”

Emefiele also said he recently met with the Nigeria Governors’ Forum and Governors Inuwa Yahaya (Gombe) and Mai Mala Buni (Yobe) and he told them that there is no going back on the January 31 deadline.

He said the CBN has 1.4 million super agents nationwide to collect old naira notes in exchange for new notes in riverine and upland areas, saying “money is going down and is circulating to the lower rung of the community”.

“We have 1.4 million points of our super agents; those agents are going to be available to conduct cash exchanges. The super agents are like kiosks, and shops in your community, whether it is a riverine or upland area, they are there, selling sweets, selling kola nuts but they have been appointed as agents that will do cash exchange and cash swaps for you. This, we have put in place,” he said.

On the CBN on October 26, 2022, announced its plan to redesign the three banknotes. President Muhammadu Buhari subsequently unveiled the redesigned N200, N500, and N1,000 notes on November 23, 2022, while the apex bank fixed a January 31 deadline for the validity of the old notes.

There have been concerns from many Nigerians over the slow spread of the three new naira notes as the January 31 2023 deadline approaches but the apex bank has insisted that the date stands.

The CBN also recently directed commercial banks to halt over-the-counter payment of the new notes and load their Automated Teller Machines (ATMs) with the redesigned naira notes to boost circulation.

The apex bank also launched a cash swap programme nationwide to enable those in the unbanked areas to exchange their old notes for new notes before the deadline.

However, the House of Representatives, the Senate, and the Nigeria Governors’ Forum have asked the CBN to extend the date to enable more Nigerians to get the new notes.