Business
Uncertainty trails scarcity of new naira notes
By Tumininu Ojelabi Hassan
The new naira notes has become a scarce commodity despite the increase in its circulation from N982.09 billion in February 2023 to N1.6 trillion in March 2023.
After the cessation of the cash crisis, which lasted for over two months, the expectation of Nigerians as regards the circulation of the new naira notes has been dashed.
Based on interactions with bank customers, they have been withdrawing only the old naira notes since CBN instructed commercial banks to start disbursing cash to customers.
A visit to Ikorodu branch of GT bank, FCMB, Wema bank, First bank, UBA, Zenith and Access bank confirmed the scarcity of the new naira notes as customers were seen withdrawing only the old naira notes in the banking halls and via ATMs.
Taofeek Solarin, a GT bank customer, who withdrew N10,000 old N500 currency from the ATM, revealed that he has been able to withdraw the old currency.
“Since everything went back to normal, I haven’t withdrawn the new currency. As a matter of fact, I have seen it only once after banks started disbursing cash. I didn’t even withdraw it, I collected it from someone. I have been wondering where the new notes vanished to because I haven’t seen it with anyone since the cash crisis subsided. Hopefully, by December 31st, 2023, we expect the new notes to be in circulation to avoid future recurrence of the cash crisis,” he said.
Felix Arinze, a Wema bank customer, who resides at Igbogbo, Ikorodu disclosed during his discussion with our correspondent that the new notes was inaccessible.
“The last time I was able to withdraw the new notes was during the cash crisis. Since then, I have been withdrawing the old notes. At a point, I started doubting if the new notes are still in existence. Well, I think this whole naira redesign policy is politically motivated. They have achieved their aim already, hence the new notes scarcity. Definitely, they know what they are doing, it’s unfortunate that the masses are the ones suffering the aftermath of their political games”, he stated.
At Zenith bank Ikorodu branch, a female customer, who came to withdraw over the counter was seen interrogating a staff member of the bank concerning the inaccessibility of the new currency; she asked why it was only the old notes customers could withdraw and why the new naira notes vanished into thin air.
A male customer on the queue, who overheard the discussion said, “They are hoarding the new notes, they just derive joy in stressing us in this country. What is the point of making us suffer during the cash scarcity when you knew you had a plan to hoard the money?” he added.
According to the staff member, the scarcity of the new currency was beyond their control as they only got the old notes from the apex bank, which they have been disbursing. Contrary to what customers think, the bank is not hoarding the new notes.
A staff member of First Bank, who spoke with our correspondent on condition of anonymity, confirmed the scarcity of the new currency.
“The first thing I need to address is that, it’s impossible for us to have the new notes and not disburse the money. We can’t give what we don’t have. The major concern is that, we have been receiving only the old notes but when we try to explain to some customers, they don’t believe us, instead they think we are keeping the money for some important personalities, which is untrue.
“Last week, a customer insisted he wanted the new currency, all our efforts to calm him down proved abortive. He claimed we had the currency but was withholding it from customers. It took the intervention of our branch manager and other customers to calm him down,” he explained.
According to a CBN source, the apex bank is not responsible for the scarcity of the new naira notes and as a matter of fact, over a trillion naira of the new currency is in circulation. The source claimed Nigerians are responsible for this scarcity as they have been hoarding the new notes instead of depositing them at commercial banks.
Furthermore, Our correspondent went around the Ikorodu garage market to ascertain the scarcity level of the new currency. The new currency is inaccessible as all business owners in the market claimed some customers had been giving them only old notes while others paid via transfer or POS, No one had given them the new currency since the cash crisis eased off.
Adijat Usman, a foodstuff merchant in the market, while discussing with our correspondent, mentioned that she hadn’t received the new note since the beginning of this month.
“Customers have been giving me the old notes, most of them transfer to my account after buying things. The new notes is scarce. ATMs at Banks aren’t dispensing the new notes too. See all the cash I have on me, everything is the old notes,” she said.
One of the attendants at Total petrol station, Ikorodu stated that only a few customers made a cash payment, which was the old notes, about 80% of their customers now make payment via POS due to the cashless policy.
A POS agent, Patrick Eje, revealed that he had been withdrawing the old notes from the bank.
“I have been withdrawing only old notes from the bank. When I asked the cashiers at the bank why it is only the old currency customers can withdraw, they said that’s what is available. I think the issue is from Central Bank, they aren’t releasing the new notes,” he stated.
The Nigerian Security Printing and Minting PLC (NSPMC) printed N500bn of the redesigned notes. However, there are speculations that these new notes have been hijacked by some important personalities in the society. Also, Nigerians are hoarding the currency due to uncertainties surrounding the cash scarcity.
A source at the CBN told BH that even staffers of the bank are hoarding the new notes in anticipation of the December 31, 2023 deadline. “To be sincere, many of our staff are hoarding, I have a couple myself, and I know colleagues, who have tens of thousands of the new notes stashed away”.
