Panic! Banks, churches, others scramble for new naira notes

By Tumininu Ojelabi Hassan

 Banks, Churches, Individuals and other corporate bodies are scrambling for new naira notes despite the new deadline when the current series of N200, N500 and N1000 notes cease to remain legal tender.

Despite complaints from bank customers concerning the inaccessibility of new naira notes, The Central Bank of Nigeria (CBN) has maintained its stance on the new deadline. Customers claimed they received a text message from CBN, which stated: “Don’t wait till the deadline to deposit your old N200, N500 and N1,000 banknotes with your bank or agent. Visit www.CBN.gov.ng for more info.

Also, CBN sent a reminder message to bank customers as the deadline are still days away. “Dial *995# to open a G-Kala Wallet & visit ANY agent or bank to deposit your old N200, N500 & N1000 banknotes before the deadline. Visit www.cbn.gov.ng for more info.”

The Apostolic Church, Nigeria had directed all parishes to complete their returns on Monday, January 30th 2023. The Area headquarters requested that no cash should be brought to them, as every payment should be made at the bank latest by January 30th, 2023. Also, during the church service on Sunday, January 22, 2023, the church announced that it will be appreciated if Church members bring new naira notes to church henceforth.

The Holy Spirit Mission Church had announced its deadline for the collection of old naira notes in a flier sent to the church members. “Notice, Deposit all your old notes at your banks or POS near you, before January 31st 2023. Don’t bring them to church. Deadline for old notes acceptance is Thursday, 26th January, 2023,” the church flyer stated.

Also, the Apostolic Faith Church announced during its church service on Sunday, January 22nd, 2023 that the church will stop accepting old naira notes after January 29th, 2023.

Our correspondent spoke with some bank customers, who expressed their frustration with the inadequate supply of the new naira notes and the closeness of the deadline of old naira notes. Anuoluwapo Sonubi, a 26 year old, Human Resources Manager said she had not been able to withdraw the new naira notes from the ATM and she withdraws every day.

“Since the new notes came out, I haven’t withdrawn it from the ATM. I withdrew today at Wema bank, Mushin branch and the ATM dispensed old notes. If the old note is still in circulation at this time, what’s the assurance that by January 31st, 2023 it will be outdated.

“They should extend it because they have to make sure that the old note is out of circulation before a deadline is given. Why is the old note still in circulation if they are really serious about this?” she said.

Another bank customer, Olamide Owolabi, a business woman based in Lagos revealed that she hasn’t withdrawn the new notes from the ATM since it’s release.

“ATMs aren’t dispensing new notes, instead they are dispensing bad old naira notes. Probably they are trying to dispose people’s deposits. I withdrew old naira notes on Friday at UBA, Yaba branch,” she stated.

Our correspondent reached out to a Polaris bank staff, who pleaded for anonymity. He revealed the reasons the new currency is not in circulation.

“Yes, the deadline is 31st of January, 2023, which I personally don’t see feasible. CBN made an instruction to Nigerians to reject old note from banks, they also said new notes are to be withdrawn from the ATM not over the counter. Customers didn’t get the other part they feel it’s over the counter. The new note in circulation is not much so the ones they bring to banks are not enough.

“I will use my bank and branch as a case study. For our ATMs we load N3 million on each machine daily and we have three machines; since last week we have been loading new currency in our machines, we had to reduce it to just one machine dispensing N1m daily. This will just last for 30 minutes.

“After exhausting that, it’s till the next day when we load N1m again. Our cash management unit is working tirelessly to get more from CBN. In summary, CBN hasn’t provided enough new currency to go round and it’s scarce because the few ones they bring are meant for the machines only,” he said.

He spoke on the challenges the bank has faced with customers during this period. “Customers usually say CBN instructed them to reject old notes from banks but they didn’t understand that it’s only through the ATM you get new currency for now. We try to calm them down by explaining to them,” he added.

A POS agent, Damilola Adedoyin revealed her concerns over the deadline of the old currency.

“This morning, I withdrew new notes at First bank ATM, Magodo branch. I could only withdraw N20,000 because of the withdrawal limit. I have exhausted the new naira notes I withdrew in the morning. Customers have been giving me old naira notes, as you can see all I have here are just old naira notes.

“After Saturday, January 28th, 2023 I will stop collecting old naira notes from my customers. I feel the deadline should be extended because the new currency isn’t in circulation yet,” she stated.

Our correspondent visited the Ketu market to find out if the new naira note was in circulation. Fathia Sulaimon, a 54 year old, who owns a foodstuff store in the market stated that no customer had given her the new currency that day.

“Since I opened my shop at 9am, no customer has given me new note, all of them have been giving me old note. I always make sure I restock everyday so I won’t have the old notes with me. By Monday, January 30th, 2023, I will start rejecting the old notes. Please CBN should extend the deadline,” she said.

Taofeek Alabi, a 46 year old butcher at Ketu market had a conversation with our correspondent over the new naira note, said.
“Since the release of the new notes, just two customers have brought N1000 new note. I haven’t seen N500 and N200 new notes at all. Customers have been bringing old notes and I can’t reject them, but once it’s Monday I will start rejecting if they don’t extend the deadline,” he said.

Amidst the worry over the shortage of the redesigned naira notes, some school vendors have stopped collecting old naira notes from students. The vendors at Damiland Secondary School have announced that the old naira notes will not be accepted from Thursday, January 26, 2023.

Also, Supersaver supermarket has announced through a flyer posted inside and at the entrance of the supermarket, which stated that they will stop collecting old naira notes from Saturday, January 28th, 2023.

“Our esteemed customers, we humbly inform you that from Saturday, 28th of January 2023, Supersaver supermarket will not accept any old note (currency) from any customer.”
On Tuesday, January 24th, 2023, the two chambers of the National Assembly asked the CBN to extend the deadline to July 31st, 2023. According to Mr. Sada Soli (APC, Katsina), a member of the House of Representatives, who moved the motion, the insufficient supply of the new notes is creating panic.

“Banks and POS outlets are struggling with the shortage of the redesigned new Naira notes ahead of the CBN deadline, consequently making it difficult for them to comply with the CBN directives as regards availability of the new notes for customers.

“Despite several concerns and appeals by the National Assembly, the Governors Forum, the Bank Customers Association of Nigeria and a host of other stakeholders in the country for the CBN to extend the period for the currency swap of the new Naira notes as well as review of the cashless policy, the CBN has remained adamant on the given deadline,” he said.
While the National Assembly deliberated on the extension of the deadline, the CBN governor, Mr. Godwin Emefiele, announced that the bank deadline has been extended by a week and a few days. He made the announcement on Sunday after visiting the President in Katsina State.