Naira Redesign: Experts caution CBN on January 31 deadline, says its uncertain

There are concerns the apex bank may not be able to fulfill 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 in light of certain Nigerians’ concerns and disappointments regarding the lack of new naira notes and the apex bank’s management of 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 of 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.

Between Monday and Friday of last week, investigations were conducted at various bank branches and ATM galleries in the Abuja Federal Capital Territory to ascertain whether the CBN directive had been followed.

The Central Business District, Maitama, Utako, Kubwa, Wuse, and other locations were visited by our correspondent at various bank branches.

Findings revealed that the majority of them were still giving out outdated notes to their clients. Additionally, outdated notes were handed to over-the-counter clients.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

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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.

On Wednesday, the apex bank sent a directive to the banks ordering the implementation to start right away.

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

Although the CBN maintained that the current series of N200, N500 and N1,000 notes would remain legal tender until its January 31 deadline, it however, advised Nigerians to ensure they deposited all the old N200, N500 and N1,000 banknotes in their possession before the deadline.

It further noted that there would be no extension for the use of the old notes beyond the stated date.

“The current series of N200, N500 and N1,000 notes would remain legal tender until the deadline of January 31, 2023,” the CBN wrote on its Facebook page over the weekend.

Reacting to the development, a Nigerian economist and Chief Executive Officer, Centre for Promotion of Private Enterprises, CPPE, Muda Yusuf, said the CBN had grossly underestimated what it takes to make currencies available across the country.

Yusuf spoke on Monday when he appeared on the Arise Television morning Show Programme.

He said that the January 31 deadline set by the apex bank is unrealistic.

He said, “The CBN should be a lot more sensitive to developments in the environment. Obviously, from what we can see, the evidence abounds everywhere; we are dealing with a situation of a capacity problem on the part of CBN, capacity in terms of the production of the new notes and capacity with respect to logistics.

“Obviously, the CBN has grossly underestimated what it takes to make these currencies available across the country. If we are getting these kinds of feedback and stories from cities such as Lagos, Port Harcourt and Kano, What are we going to say about people in the more remote places in other States outside of these major cities?

“As I speak to you, I have not seen the new currency notes beyond what I see on the screen and things like that. Yet, we have practically just about three weeks to the deadline. This is clearly unrealistic, and I wonder if sometimes the CBN behaves as if they are on a different planet from where we are. This is obviously unrealistic; you see, the deadline is unrealistic. Frankly, I don’t understand what the rush is all about. I don’t know what they want to achieve.”