BAnknotes

The old Naira notes remain valid beyond February 10, 2023 set by the Central Bank of Nigeria (CBN), courtesy of the Supreme Court of Nigeria.

The granted the immediate request of the three governors of Kaduna, Kogi and Zamfara .

The Three northern states had in a motion ex-parte filed on February 3rd, by their lawyer, AbdulHakeem Mustapha (SAN), prayed the apex court to halt the Central Bank of Nigeria (CBN) naira redesign policy.

A seven-man panel of the Supreme Court led by Justice John Okoro, in a unanimous ruling, granted an interim injunction restraining the FG, CBN, commercial banks etc from implementing the February 10, deadline for the old 200, 500 and 1000 Naira notes to stop being a legal tender.

The court further held that the FG, CBN, commercial banks must not continue with the deadline pending the determination of a notice on notice on in respect of the issue on February 15.

By this ruling, the old Naira notes continue to be legal tenders in Nigeria.

‘Why Kaduna, Kogi, Zamfara Approached Supreme Court’

After the ruling, the lawyer to the three state government, Mustapha said Zamfara, Kogi and Kaduna dragged the Federal Government and the apex bank to the highest court because the policy is causing hardship on Nigerians, especially those in the rural areas.

“We invoke the original jurisdiction of the Supreme Court when there is a dispute between the state government and the Federal Government. It is one of the few occasions where the Supreme Court act as the original jurisdiction. So, we invoked the powers of the Supreme Court to hear this application,” the senior advocate said.

“The reason for it is that as well-intentioned as this policy of the Federal Government on this naira redesign, it is causing hardship all over the country. As we can all see, banks are being harassed, Nigerians are suffering, especially the downtrodden, even in the urban areas they are having difficulty, but it is more excruciating in the rural areas.

“So, the three state governments – Zamfara, Kaduna and Kogi deemed it fit for us to invoke the powers of the Supreme Court to intervene.”

The pandemonium over the February 10 deadline for the validity of three old naira notes assumed another dimension on Monday as five political parties and three state governments begun legal battles.

Whilst the Kaduna, Kogi and Zamfara governments dragged the Federal government before the Supreme Court, seeking an extension to the February 10 deadline, five political parties took the matter to the Federal Capital Territory (FCT) High Court and secured an order barring the Federal Government and the apex bank from any extension of the deadline.

The CBN had 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.

The CBN also pegged its weekly cash withdrawal limits to N500,000 for individuals and N5m for corporate firms.

With cries by many Nigerians, the apex bank extended the deadline from January 31 to February 10, saying it got the approval of the President.

The National Assembly asked for a six-month extension of the policy.

President Muhammadu Buhari on Friday after a meeting with some APC governors asked for seven days to make a major decision on the policy.

Many FCT residents have continued to face difficulty in accessing the newly redesigned Naira notes, attributing the challenge to bank officials, who they say allegedly hoard and selling the legal tender.

The stakeholders urged the Central Bank of Nigeria (CBN) to impose heavy sections on Deposit Money Banks (DMBs) found complicit in fuelling the Naira scarcity, as well as other abusers of the currency.

According to the stakeholders, in spite of the CBN’s threat to sanction banks found to be hoarding or involved in shady deals with the naira, not one bank has been sanctioned.

The stakeholders said if just one bank was sanctioned, it would serve as  deterrent to others.

Some CBN super agents and Point of Sale (PoS) operators had accused some DMBs of hoarding the redesigned Naira notes and imposing illegal withdrawal charges.

The apex bank had in a statement by Mr Osita Nwanisobi, the Director, Corporate Communications Department, said that it would come down heavy on DMBs found complicit, and also prosecute other abusers of the Naira.

Nwanisobi assured Nigerians that the queues at Automated Teller Machines (ATMs) and other cash withdrawal points would soon disappear, adding that the CBN was working round the clock to ensure normalcy.

According to him, the apex bank is working in collaboration with the Nigeria Police Force and other law enforcement agencies to address the situation.

“The CBN has observed with grave concern, the activities of persons who sell the newly redesigned banknotes and those who flagrantly abuse the legal tender.

“We have equally noticed the queues at ATMs across the country and an upward trend in the cases of people stocking and aggregating the newly introduced banknotes they serially obtain from ATMs.

“Also worrisome are the reported cases of unregistered persons and non-bank officials swapping banknotes for members of the public, purportedly on behalf of the CBN,” he said.

According to Nwanisobi, contrary to the practice of these unpatriotic

persons, it is unlawful to sell the Naira, hurl spray, or stamp on the currency under any circumstance whatsoever.

Accordingly, CBN is collaborating with the Nigeria Police, Federal Inland Revenue Service (FIRS), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU) to address the unpatriotic practice.

“We, therefore, warn Nigerians, particularly those at social functions such as birthdays, weddings and funerals, to desist from disrespecting the Naira or risk being arrested by law enforcement agencies,” he said.

The director assured Nigerians that the CBN was committed to ensuring effective distribution of the newly introduced Naira banknotes.

“We urge them to exercise patience as the CBN is working assiduously to address the challenge of queues at ATMs.

“In line with this resolve, the governor, Mr Godwin Emefiele, has directed DMBs to commence the payment of the redesigned Naira notes over the counter, subject to a maximum daily payout limit of N20,000.

“We also admonish members of the public to embrace and adopt other payment channels for their transactions.

“The Naira is our legal tender and symbol of national pride, let us respect it and handle it with care,” he said.

In spite of assurances by the apex bank that the situation would soon be under control, Nigerians continue to experience hardship occasioned by the scarcity of the Naira.

The situation is captured in various audio and video clips which have gone viral on social media.

One of such instances is the fracas that ensued at an ATM point in the University of Benin, between some personnel of the Nigeria Army and some students.

The Naira situation, coupled with the scarcity of petroleum products, also resulted to violent protests in Ibadan, necessitating a statewide address by the state governor, Seyi Makinde.

Some frustrated bank customers have also been captured losing their tempers and threatening violence within the banking halls due to their inability to access the Naira.

Meanwhile, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) said that it had arrested some bank officials for sabotaging circulation of the new Naira notes.

According to information on its official website, the ICPC said that one of the bank officials was the Branch Service Head of Stanbic IBTC Bank, Deidei Branch, Abuja.

It said that she was arrested for deliberate refusal to upload cash into the branch ATMs, even when the cash was available, and people were already queuing up.

In a related development, the ICPC said its Compliance Team also busted a First City Monument Bank (FCMB) branch in Osogbo, Osun State, where some ATMs were loaded with cash with their wrappers intact.

“That prevented the cash from being dispensed. The Team therefore directed that the wrappers be removed and the cash loaded properly.

“However, when a follow-up visit was undertaken to ascertain the level of compliance, the Team discovered that one of the ATMs was still loaded with the wrappers.

“The operation manager of the Bank was arrested and taken in for questioning,” the commission said.

It added that some PoS operators as well as a security guard were also arrested during the ongoing exercise in Osun State for charging exorbitant commissions for cash.

“Investigations, however, revealed that they got the money from Filling Stations that collect new notes from fuel buyers, and then resold the cash to the public at exorbitant rates.

“The arrested persons are helping the commission with information to assist investigations and bust any syndicates involved in the hoarding or sales of the redesigned Naira notes,” it said.

ICPC had on Wednesday arrested one Omoseyin Oluwadarasimi, who seized the opportunity of the scarcity to openly market the new notes.

According to the commission, it is believed that she is in collusion with key elements in the financial services sector diverting the newly released notes away from banking halls and payment channels.

“She is currently in ICPC detention and is helping the Commission with its findings on the criminal trading of the naira and the attendant scarcity and negative economic outcomes being caused by the action.

“The action is in furtherance of the collaboration between CBN, ICPC and EFCC in implementing the new cashless policy and naira redesign,” it said.

The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has appealed to Nigerians to show understanding adding  that the redesigned notes will circulate and be accessible.

Emefiele made the appeal at a special media briefing on the new naira notes, on Friday, in Lagos.

He noted he was seeing the protests and arguments surrounding the difficulty citizens were facing in accessing the new notes.

”I understand the agitation and I’m begging in God’s name, we on our knees begging people to please show understanding. They should be calm.

”In our meetings with the banks, we have told them to set up tents and chairs, give people numbers, which I’m sure some people will say it is old fashioned.

”But at this time that we’re trying to get the currency in circulation amongst everybody, people have to have numbers and they come in under a queueing arrangements that when you come in you get served, if it finishes, just be patient.

”By tomorrow, when you come back, they will start from where they stopped, you will not be cheated.

”Let’s just be calm and adopt a good queuing system, the assurance we give is that it will eventually go round.

”Eventually the limits will be raised and eventually the limits will be removed and people will be able to conduct their business transactions in a way that it has always been in the past,” Emefiele said.

On high charges by the Point of Sale (PoS) agents on every transaction made by their customers, the apex bank governor urged banks to stop the charges on PoS.

”I am going to be calling a meeting with the banks this evening or by tomorrow, if those charges go to or those charges have been charged through the bank, we are going to have an arrangement with even telcos to see how those charges can actually at this time be stopped.

”Those charges at this time should be stopped. So, if we know whatever you are making that you’re not making because we stopped it, we can collect it somewhere and look for a way to pay you.

”But we don’t want you to continue to create pain on those who want to use alternative channels when they cannot have cash in their pocket.

”We will go into this later this night or even tomorrow, we’re going to call a meeting of both the banks and the mobile networks; at this time nobody should be charged, if you are charged, we will need to know about it.

”But we would want this service to continue to be offered. Whatever it is in terms of volume and number that you have carried out. We will look for away to pay you your money,” he said.

NAN reports that the redesigned naira notes comprising N200, N500 and N1,000, came into use on Dec. 15, 2022, after they were unveiled by President Muhammadu Buhari on Nov. 23, 2022 in Abuja.

The CBN had earlier fixed Jan. 31 as deadline for the collection of old naira notes, but later extended the time limit to Feb. 10.

The CBN governor had said the extension was to allow Nigerians that had naira legitimately earned and trapped, the opportunity to deposit their money for exchange.

The governor had ordered banks to load their Automated Teller Machines with the new naira notes to ensure Nigerians had access to them.

Some Lagos residents have expressed their frustration and anger as they spend hours on long queues without being able to withdraw cash via Automated Teller Machines (ATMs).

Some banks around Airport Road, Ikotun, Surulere, Ejigbo and Oshodi-Isolo axis, reported that people queued up for more than one hour to be able to withdraw as little as N2,000.

The situation was the same in almost all bank branches on the mainland, while the maximum amount paid was N20, 000.

The Central Bank of Nigeria (CBN) had ordered banks to load their ATMs with the new redesigned naira notes to ensure Nigerians have access to it.

The new redesigned naira notes comprising N200, N500 and N1000, became a legal tender on Dec. 15, 2022, after they were unveiled by President Muhammadu Buhari on Nov. 23, 2022 in Abuja.

The CBN had earlier fixed Jan. 31 as deadline for the collection of old naira denominated notes, but later extended the time limit to Feb. 17.

The CBN Governor, Mr Godwin Emefiele, said the extension was to allow Nigerians that have naira legitimately earned and trapped, the opportunity to deposit their monies for exchange.

Some of the customers called on CBN to compel the commercial banks to dispense the new notes at their ATMs to ameliorate sufferings of the people.

Mrs Affiong Peters, who owns a provision shop, urged the government to come to the aid of the poor masses.

“The scarcity of the new naira notes has led to some people being hungry and not able to feed their families because of their inability to withdraw money from the ATMs.

“You will not believe that I have been on this queue since 12 p.m., and it’s almost 1.30 p.m., I still have not been able to withdraw. Government should come to our aid,’’ Peters said.

 Mr Owolabi Anjorin, a petty trader, also called on the apex banks to ensure the new notes were in circulation.

“I was on the queue for one hour before I could withdraw just N10,000. if you were not a customer of the bank, where you were to withdraw from, the ATM would only pay you half of the amount you wanted.

“I think this extension is okay, but dispensing back the old notes that customers have deposited is not helping the issue at hand.  So, if the apex bank can allow more money in circulation, it will help,’’ he said.

Mr Andrew Louis, an electrician, also spoke in the same vein, said old and new notes should be used concurrently till the new notes were fully in circulation.

“ I have been here for over an hour waiting to withdraw my money, after two people withdrew about N20,000, the ATM stopped dispensing.

“When we asked what went wrong, the bank officials told us that the money had finished.

“This is annoying, if they know that they do not have the new notes to give to us, it is better for them to still be collecting the old one, while the new one is still coming as it is presently not in circulation,’’ he said.

Mrs Ofonime Udoh, a nursery school minder, called on the apex bank to adjust its policy on the new naira notes as well as the withdrawal limit, saying it was not in favour of the poor masses.

“I went to the bank today to make a withdrawal and I was told that I could not withdraw, but I could only deposit; ATMs and banking halls were not paying.

“The truth is that many people are stranded, some are crying that they cannot withdraw their money, marketers and petty traders are not selling because people are not coming to buy.

“So, they should help us look into it and adjust the policy for us, it’s not in our favour at all,’’ she said.

The scarcity of the redesigned naira notes and the fact that traders and business owners are rejecting the old notes, have forced many residents to adopt cashless transactions in Awka, Anambra.

The Central Bank of Nigeria (CBN) fixed Jan. 31 as the deadline for the use of the old naira notes.

The redesigned naira notes, comprising N200, N500 and N1,000, became legal tender on Dec. 15, 2022, after they were unveiled by President Muhammadu Buhari on Nov. 23, 2022, in Abuja.

A check at Zik’s Avenue, UNIZIK Junction, Regina, Okpuno and Aroma areas, discovered that traders and business owners were asking their constomers to pay with new notes.

It was also discovered that some of the Automated Teller Machines (ATMs) in major parts of Awka, were still dispensing the old naira notes while there were long queues at few ATMs dispensing the redesigned naira notes.

Some banks dispensing the new notes have configured their ATMs to dispense N5,000 or N10,000 per transaction.

Also, some Point of Sale (PoS) operators were still paying with old naira notes while some who had the redesigned naira notes increased their charges by 100 to 200 per cent.

Mrs Nnenna Okafor, a Cyber cafe operator at Aroma, told NAN that she already deposited all her old naira notes at the bank after spending about three hours and resolved to stop collecting old notes from her customers.

“With my experience at the bank yesterday, I cannot afford to collect old naira notes anymore. I have been asking my customer to do mobile transfer to my bank account,” she said.

Another resident, Mr Johnpaul Ikeze, who runs a supermarket at Regina area, said that he refused to collect old notes to avoid the notes getting stuck with him since it is barely three days to the expiration of the old naira notes.

“I’m done with the old naira notes since the Central Bank of Nigeria (CBN) has refused to extend the expiration date. It might get stuck with me and I can not leave my business to go and queue at the bank.

“Since Friday, my customers have been using debit card or mobile transfer to pay for products and it is even easier. My family has also resorted to mobile transfer if we need to pay for something,” he said.

Mrs Ego Uzoma, a civil servant, told NAN at Eke-Awka market, that she had to do mobile transfer to pay for a commodity she bought at the sum of N500 because the owner of the store refused to collect old naira notes.

Uzoma lamented that she had to pay so much per transaction for the mobile transfers.

“If not for the too many bank charges and sometimes, network problems, cashless transaction is actually easier. The few PoS operators who pay with the new notes charge N100 for new N1,000 notes.

“This is very frustrating because in Awka,, the redesigned N1,000 notes is kind of available and when you buy stuff or pay for transportation with it, they still give you old N500 or N200 notes as balance, telling you the redesigned ones are not available.

“I scrambled to deposit the old naira notes at the bank, I cannot afford to take them back and I cannot also pay extra at the PoS to get new notes, which is why I resorted to cashless transactions,” she said.

Narrating his ordeal, Mr Eric Uzor, an Engineer, said he had to buy additional needless commodities to the tune of N1000 because he could not afford to pay for a N250 commodity using mobile transfer.

“It does not make sense to pay bank charges over N250 product. So, I had to buy other stuff to make up to N1,000. The CBN needs to do something urgently.

“They should make these new naira notes available for people to use. The scarcity has been very frustrating here in Anambra.

“They should extend the expiration date or allow the old notes to phase out gradually without any deadline,” he said.

Barely four days to the expiration of the old naira notes, many Automated Teller Machines (ATMs) in major parts of Lagos do not dispense either the old notes or the new naira notes, leaving customers stranded.

The situation is further compounded by the fact that traders are also rejecting the old notes, asking consumers to pay with new notes.

The Central Bank of Nigeria (CBN) fixed Jan. 31 as the deadline for the use of the old naira notes of N200, N500 and N1,000 denominations.

The new notes became legal tender since Dec. 15, 2022 when they were unveiled by President Muhammadu Buhari on Nov. 23, 2022 in Abuja.

Some of the ATMs monitored in Ikotun, Ejigbo, Egbeda, Surulere and Murtala Muhammed Airport in Lagos were not dispensing either the old or new naira notes.

Some of the banks in Surulere, Oyingbo, Ojota areas still dispensing old notes witnessed rejection with the customers depositing back the money.

Mr Michael Adejumobi, a software engineer, said that the banks were frustrating people by not loading the new redesigned notes in the ATMs.

“The suffering in this country is too much; why is the Central Bank of Nigeria (CBN) phasing out old notes without proper provision for people to have the new ones?

“Now, the banks are not even dispensing any of the notes, whether old or new.

“This is so frustrating. I have been running around banks looking for these new notes because the market women have also started rejecting the old notes,” he said.

At Ikotun market, traders also rejected the old notes leaving consumers in frustration.

The traders ask buyers to pay with new notes or use Point of Sale (PoS) machines to carry out payment which is done at a fee.

Miss Happiness Okpara, a PoS operator, said that she had no new notes to service her customers because she was paid with the old notes.

“I went to the bank this morning with the hope that since the time for the deadline is near, that I would have new notes at hand to pay people.

“I was surprised when I asked for N100,000, what was given to me were old notes. I collected them because I needed to do my business,” Okpara said.

Meanwhile, the Governor of Central Bank, Mr Godwin Emefiele, during a sensitisation programme at Computer Village, Ikeja, said the new notes were lying in the apex bank’s vaults waiting for commercial banks to come and pick them.

Emefiele, represented at the event by Mr Kofo Salam-Alada, Director, Legal Services Department, said the apex bank had been calling upon commercial banks to approach its branches across the country to pick up the new notes.

He also said that the apex bank had even waived some of the conditionalities for accessing currency notes in order to accommodate the banks.

“The banks were being given slots, but now the CBN is bending backward to accommodate the demands of the banks in order to service them so that they can service customers for easy access to the new naira notes,” he said.

CBN’s monitoring team’s tour to commercial banks in Epe, the banks complained that logistics of going to bring the new notes from its financial hub on the Island was the reason they had no new notes.

The CBN has insisted that the Jan. 31 deadline remains sacrosanct.