Naira redesign: Experts caution CBN that the January 31 deadline is uncertain

There are concerns the apex bank may not be able to fulfil the January 31 target, which is the deadline the Central Bank of Nigeria, CBN, established for the cessation of the circulation of the old Naira notes.

This is especially true because some Nigerians are worried and upset about the lack of new naira notes and how the central bank is handling the situation.

Remember that the CBN declared its intention to redesign, print, and distribute new series of N200, N500, and N1,000 notes in October last year? The highest denomination of Nigeria’s eight legal tenders is the three-note note.

The new currency notes went into circulation starting on December 15, 2022, after President Muhammadu Buhari unveiled the new designs on November 23, 2022. Both the new and old notes were then deemed legal tender until January 31, 2023.

Obasanjonews24 went to different bank offices and ATM galleries in the Abuja Federal Capital Territory from Monday to Friday of last week to see if the CBN directive had been followed.

Our correspondent went to different bank branches in the Central Business District, Maitama, Utako, Kubwa, Wuse, and other places.

Findings revealed that the majority of them were still giving out outdated notes to their clients. Additionally, outdated notes were handed to over-the-counter clients.

Our correspondent, who used the ATM at the Access Bank branch in Abuja’s Utako District, claimed that old notes in the amounts of N500 and N1000 were being given to clients. The same information was reported in additional places our reporters visited.

Additionally, a few of the PoS vendors operating in the Kubwa, Bwari Area Council of the Federal Capital Territory (FCT) claimed that they did not have any new notes to give to their clients and that, of the N100,000 in bail they received from the bank, only N1,000 worth of new notes were given to them.

The CBN had reiterated that January 31, 2023, would remain the timetable for the gradual phase-out of older currency from circulation, despite worries about the limited availability of the new notes.

According to information obtained by the Daily Post, the apex bank recently ordered the implementation to start right away and sent a directive to the banks on Wednesday.

However, as of last weekend, the banks had not followed the top bank’s mandate since they had stocked their ATMs with the old notes due to complaints over the lack of fresh notes.

The CBN recommended Nigerians make sure they deposited all of the old N200, N500, and N1,000 banknotes in their possession by the deadline, even though it insisted that the current series of N200, N500, and N1,000 notes would continue to be legal money until the January 31 deadline.

It also indicated that the old notes’ use would not be extended past the specified date.

On its Facebook page over the weekend, the Central Bank of Nigeria (CBN) said that the current series of N200, N500, and N1,000 notes would still be accepted until January 31, 2023.

A Nigerian economist and the CEO of the Center for Promotion of Private Enterprises (CPPE), Muda Yusuf, responded to the situation by saying that the CBN had drastically miscalculated the effort required to make currency available throughout the nation.

Yusuf stated during his Monday appearance on Arise Television’s morning show program:

He claimed that the apex bank’s January 31 deadline is unreasonable.

He declared, “The CBN needs to pay a lot more attention to environmental changes.” We are dealing with a situation where CBN has a capacity problem, both in terms of the capacity to produce the new notes and in terms of logistics, as is clear from what we can see and the evidence that abounds everywhere.

“Clearly, the CBN drastically miscalculated the effort required to make these currencies accessible throughout the nation. What are we going to say about people in the more rural areas of other states outside of these major cities if we are receiving this kind of criticism and hearing stories from cities like Lagos, Port Harcourt, and Kano?

I have only seen the new currency notes on the screen and other similar things as I speak to you. However, the deadline is still roughly three weeks away. This is obviously implausible, and I wonder if occasionally the CBN acts like they are on a different planet from ours. You can see that the deadline is arbitrary, and this is obviously unrealistic. To be completely honest, I don’t see the urgency. I’m not sure what they want to accomplish.

The Human Rights Writers Association of Nigeria (HURIWA) has asked the CBN why there aren’t any new naira notes just a few weeks before the deadline.

In a statement, HURIWA asked the Economic and Financial Crimes Commission, or EFCC, to go after currency traders and powerful people who bought up the few new bills that the central bank had just given out.

“Millions of Nigerians, including those in cities like Abuja, Lagos, Port Harcourt, Kano, and other places, have yet to see or touch the new naira notes, which the Central Bank of Nigeria (CBN) released almost three weeks ago. Remote areas and villages experience the worst conditions.

Even though January 31, 2023 is getting closer, it said in a statement that “black marketers, politicians, and expats continue to buy crispy naira notes while denying millions of regular Nigerian bank depositors access to the new notes.”

Dr. Anayochukwu Basil Chukwu, a financial expert from the Alex Ekwueme Federal University in Ndufu-Alike, Ebonyi State, told the Daily Post that the CBN was unprepared for the goals that they had set for their programme.

The financial expert pointed out that many Nigerians, particularly those in rural regions, weren’t bank customers and said it would be challenging for them to adapt to the new policy.

He declared that the CBN was not ready to take the necessary action. What they seek to accomplish has not been supported by their body language or policy direction.

In reality, their goal is to make sure the economy has a strong base, but it looks like they are not ready for the policy goals they have set for themselves right now.

“I believe they should postpone the date because most people—including those in urban regions—have yet to obtain the new naira notes, let alone those who live in rural areas.

“This policy, if they don’t change it or reverse it, will be very tough, especially for those who don’t belong to the communities that are bankable because many individuals don’t work in the banking industry.”

If I’m not mistaken, more than 30 million Nigerians are not involved in the banking industry. If they lack bank accounts and other essentials, I wonder how they will manage under the new policy course.

Based on what is going on in the country, the central bank should change the deadline to make it more reasonable.