…as banks await fresh directives from CBN
Operators of Point of Sales, PoS, cash services sustained their high charges during the weekend despite the threat by the Central Bank of Nigeria, CBN, to withdraw their licenses over the widespread hike in charges far beyond officially approved tariff. Financial findings across several locations in Lagos and Abuja show that banks did not open their branches on Saturday and Sunday (February 11 and 12, 2023) to receive old notes, indicating that they were sticking to the February 10, 2023 deadline. Recall that in line with the Central Bank of Nigeria, CBN, directive, all commercial banks were opening their branches on Saturdays and Sundays for the purpose of receiving old banknotes since December 15, 2022, when the Naira change began with the introduction of the new banknotes.
A security man at one of the branches of a tier-one bank on Saturday stated: “The bank did not open. As you have seen, there is no cash. We are waiting for our management to tell us the next thing to do as deadline for submission of old notes ended yesterday (Friday). We will not open until Monday when we shall get further instruction on whether to receive old notes or not”.Meanwhile, the tense cash withdrawal financial environment that pervaded the country in the past two weeks ahead the February 10, 2023 deadline for the old banknote, has remained despite the Supreme Court order removing the deadline.
Financial findings across several locations indicated that as at Friday, two days after the Supreme Court order, most banks did not dispense new banknotes while many banks’ branches that were closed earlier in the week due to threat of violence remained closed.
Also most Automated Teller Machines, ATMs, were without cash throughout the weekend, indicating further deterioration in the cash supply situation after the court order.
CBN, Banks in uneventful deadline
There were also indications that the CBN and the banks were indifferent to the Supreme Court order as they maintained silence while continuing businesses within the limits of existing CBN directives.
On Friday, February 10, the official date announced by the apex bank as deadline for submission of old naira notes, and also two days after the court order suspending the deadline, the CBN’s countdown clock to the deadline was still running.
The notice on its website reads: “Current series of N200, N500 and N1000 notes remain legal until the deadline 10th February 2023”.
In the notice, the bank also encouraged Nigerians to deposit their old notes at designated commercial banks.
The commercial banks were also focused on the deadline.
One of the tier one banks even sent messages to its customers, on Thursday, a day after the Supreme Court order, to alert them that the deadline when old N200, N500 and the N1000 Naira notes would no longer be legal tender is next day and advised them to deposit such notes in the bank before it was too late.
Our reporters who visited several banks in Abuja observed unusual calm at banks’ premises.
Most banks in Abuja remained shut at the weekend, leaving only few ATMs with limited cash in new banknotes.
However, a bank official told one of our correspondents that they did not witness the anticipated rush to deposit old notes on Friday that could warrant opening at weekends.
He added that scarcity of the new notes made weekend banking totally unnecessary as many banks did not have the new notes, thereby leaving most ATMs empty.
None of the three banks in Kuje Area Council of Abuja, opened to customers on Saturday and Sunday. The three banks are, First Bank, FCMB, and UBA.
Most banks’ ATMs did not dispense.
In Kuje, UBA was the only bank dispensing cash when our correspondent visited the banks.
Uncertainty amongst publics
There was uncertainty among members of the public on whether the CBN would still allow circulation of the old notes, given the position of the Attorney-General of the Federation, Abubakar Malami, who said that the Federal Government would abide by the Supreme Court order that old notes should continue as legal tender until its final ruling.
A community health officer, Ms. Joy Alamene, who resides in Kabusa, a suburb of Abuja Municipal Area Council, Abuja, said, “I was in Kabusa Market to buy food items for my family, the woman selling told me that she would not accept old Naira notes because other sellers are not accepting the money in the market.
“I also went to the supermarket which I normally patronize. The cashiers refuse to accept old Naira notes as well”.
However, Alamene said at the PoS they give customers old Naira notes, “The PoS operators are giving us old Naira notes, and it is them that gave me the old Naira notes market women rejected.”
Also a teacher in one of the private schools in Abuja central district, Margret Ojuola, said, “I was at the motor park to board a taxi to my place of work at Area 1, Garki, the taxi driver said he would not accept old Naira notes from me, and it almost got me stranded, while standing with him, other drivers intervened and persuaded him to accept the money from me which he did.
“Meanwhile, as he departed the park he said the filling stations are rejecting old Naira notes, and that was why he also rejected the one from me. The PoS operators are accepting the old Naira notes. Some said they will take the notes to their banks.”
