With only a few days left before the Nigerian naira’s old bills are out of circulation, some banks are accusing the Nigerian Central Bank of failing to distribute enough new bills. Pressure is mounting to extend the return period for the old bills, but the central bank insists that the January 31 deadline is still in effect.
Less than 40% of ATMs are dispensing new bills
As the January 31 deadline for the Central Bank of Nigeria (CBN) to return old naira bills approaches, banks in several Nigerian states reported that they are still distributing the soon-to-be obsolete bills. There are also fewer automated teller machines (ATMs), with less than 40% dispensing the new bills, according to a survey by The Guardian.
According tothe Guardian report, some bank officials forcefully claim that the shortage is due to the CBN not distributing enough new banknotes. One unnamed banker in Lagos claimed that his branch had obtained “only 1.5 million new bills” in the previous week and that, as of this writing, there was no new stock of the redesigned naira.
The banker, however, suggested that the CBN is planning a massive rollout of the new bills during the last week of January. The banker said.
The deadline is approaching, but the expected volume has not been obtained. Since there is no indication that the deadline will be extended, we suspect that they will be deploying large quantities next week.
Another banker in Ogun State, Nigeria, said that while the CBN has refused to extend the current deadline, the growing unrest suggests that a “massive rollout of funds” should have taken place by now.
The CBN will not bow to pressure
Concerns that many Nigerians will lose out if the old naira bills are phased out have led some politicians to call for an extension of the deadline. However, the CBN has so far not bowed to the pressure, insisting that the deadline still stands.
In the past, the central bank has dismissed claims that its decision to denormalize the old bills was aimed at punishing certain groups. Instead, the CBN argues that the measure is intended to reduce cash management expenditures and eliminate counterfeit banknotes.
Meanwhile, some Nigerian commentators have suggested that the CBN may be deliberately injecting insufficient banknotes as part of an attempt to force residents to switch to digital alternatives, including the Central Bank Digital Currency (CBDC). In response to these speculations, the Nigerian Governors’ Forum (NGF) issued a statement warning the CBN.
In the statement, the governorsreportedlysaid they are not opposed to the currency redesign policy, but that the central bank should “consider the peculiarities of the state, especially as they relate to places with poor financial inclusion and services.”
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