CBN says it will sanction commercial banks who flout its directive on new naira notes

COMMERCIAL banks found hoarding the new naira notes will be sanctioned by the Central Bank of Nigeria (CBN) as part of a clampdown on any operators across the finance industry who get in the way of the new currency design programme.

On November 23 last year, the CBN launched redesigned ₦‎200, ₦‎500 and ₦‎1000 banknotes, saying the naira was long overdue to wear a new look. However, there is a chronic scarcity of these new notes, prompting the CBN to introduce restrictions on the amounts that can be withdrawn.

In a bid to combat the shortages which are growing by the day, the CBN has now ordered banks not to pay customers making over-the-counter withdrawals of new naira notes again. Earlier this month,  a new set of restrictions come into effect with a maximum weekly limit for cash withdrawals introduced.

Saying that the CBN will sanction any commercial bank found hoarding the new naira notes, Alhaji Umar Biu, the bank's Kano branch controller, said it had produced enough notes for distribution to all the banks across the country. He revealed this during a sensitisation programme on the new naira notes organised for traders at the Sabon Gari market in Kano, which was extended to the popular Kwari Market, Wapa Bureau De Change Market, Kofar Wambam market and the famous Kurmi market in the Kano metropolis.

Alhaji Biu said: “You have the right to report any bank found hoarding the new naira notes or refusing to collect your old naira notes before the 31st January 2023 deadline. No bank should refuse to collect the old naira notes until the deadline of 31st January 2023.”

According to Alhaji Biu the CBN has directed commercial banks to desist from payment on the counter as part of effort to check the favouritism of customers. He maintained that there was no going back on the January 31 deadline adding that all the old naira notes would cease to be legal tender on that date.

He further called on the market men and women to report banks that were still loading the old naira notes on their automatic teller machines. According to Alhaji Biu, the sensitisation programme was designed to enlighten them on the need to deposit the old notes before the deadline to avoid any loss.

Alhaji Sule Kura, the chairman of the Sabon Gari market Traders, called on the apex bank to make the new naira notes available to commercial banks so as to reduce the hardship being encountered by customers. He expressed great concern over the non-availability of the new naira notes in most of the commercial banks saying many people will lose their money if urgent steps were not taken to address the situation.