Bankers explain scarcity of new naira notes in circulation as deadline for phase-out of old currency approaches

Bankers in Nigeria have given reasons for the prevalence of old naira notes in circulation with the deadline for their withdrawal about eight months away.

The Central Bank of Nigeria (CBN) in October 2022 announced the redesign of the old N200, N500, and N1,000 notes.

The apex bank also announced January 31 as the deadline for the withdrawal of the old banknotes public.

However, this was extended to February 10 following pressure from Nigerians.

President Muhammadu Buhari later extended the validity of the old N200 notes till April 10 but declared that the N500 and N1000 notes had ceased to be legal tender.

In response to the crisis that trailed the redesign of the naira notes, 10 governors elected on the platform of the All Progressives Congress (APC) challenged the policy at the Supreme Court in February.

In a landmark ruling delivered on March 3, the apex court extended the validity of the old naira notes to December 31 to give CBN enough time to circulate the redesign notes.

However, since the Supreme Court judgment, the new naira notes have disappeared from bank Automated Teller Machines (ATMs) and counters despite the currency’s increase in circulation from N982.09 billion in February to N1.6 trillion at the end of March.

READ ALSO: CAN demands probe of banks hoarding new notes

During a visit to a commercial bank in the Ikeja area of Lagos, Ripples Nigeria observed a customer complaining to a cashier in the banking hall that the customers were issued old notes.

The frustrated-looking cashier replied that the bank had no control over the type of currency supplied as most of the supplies from CBN were old notes.

A branch manager at another commercial bank, who introduced himself as Ifeanyi, said: “As bankers, we are also surprised. Many customers believe the fault is ours, but it is not. We release what we receive from the CBN to our customers.”

He stressed that 70 percent of every cash supply received from the CBN were old notes.

The banker added: “It takes almost two years for new notes to be in full supply anywhere in the world. Based on the current situation, I am worried about what will happen again by December.”

Attempts to contact the CBN’s acting spokesman, Isa Abdulmumin, on the limited supply of new naira notes were unsuccessful.

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