With the old Nigerian naira notes due to be withdrawn from circulation, some banks have accused the Central Bank of Nigeria of not distributing enough new notes. Despite mounting pressure to extend the return period for old notes, the central bank insists that the January 31 deadline remains in effect.
Less than 40% of ATMs are dispensing new bills
As the January 31 deadline for the Central Bank of Nigeria (CBN) to return the old naira notes approaches, banks in several Nigerian states are still distributing the soon-to-be demonetized notes, according to a report. In addition, it was reported that fewer automated teller machines (ATMs), less than 40% according to a Guardian investigation, were issuing new notes.
According to the Guardian’s Report, some banking experts insist that the shortage is caused by the CBN, which has not distributed enough new notes. An unnamed banker from Lagos claimed that his branch received “only N1.5 million new notes” the previous week and he had no new stock of the redrafted naira at the time of writing.
The banker, however, suggested that the CBN planned to do a mass launch of the new notes in the last week of January. The banker said:
The deadline is fast approaching, but we are not receiving the expected amount. We suspect that they will launch it massively next week because there is no indication that the deadline will be extended.
Another banker from Nigeria’s Ogun State said that while the CBN has refused to extend the current deadline, mounting anxiety suggests “a massive deployment of money” should have been made by now.
CBN refuses to give in to pressure
Fears that many Nigerians will lose out when the old naira notes are phased out have led some politicians to call for an extension of the deadline. However, the CBN has so far refused to give in to pressure and has insisted that the deadline still stands.
In the past, the central bank has dismissed claims that the decision to demonetize old notes is aimed at punishing certain groups. Instead, the CBN insists that the exercise is designed to help reduce spending on cash management, as well as eliminate counterfeit bills.
Meanwhile, some Nigerian commentators have suggested that the CBN may be deliberately injecting unsuitable notes as part of an attempt to force residents to switch to digital alternatives, including their central bank digital currency (CBDC). Such speculation, in turn, has led the Nigerian Governors Forum (NGF) to issue a statement warning the CBN.
In the statement, the governors reportedly He said that while they are not against the currency redesign policy, the central bank should “consider the peculiarities of states, especially with regard to financial inclusion and underserved locations.”
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