Kaduna State government denies that El-Rufai orders demolition of banks who refuse old notes

KADUNA State government officials have denied reports that Governor Nasir El-Rufai has ordered the demolition of banks that failed to comply with the directive to accept the old N500 and N1,000 from customers in the state.

On November 23 last year, the Central Bank of Nigeria (CBN) launched redesigned ₦‎200, ₦‎500 and ₦‎1000 banknotes, saying the naira was long overdue to wear a new look. Nigerians had been given until January 31 to hand in all old notes, after which time they will cease to be legal tender but the process has been fraught with difficulties, prompting the National Assembly to ask the CBN to extend the deadline.

Across the country,  the last few weeks have been sheer hell for Nigerians as they have found it impossible to get hold of these new notes and this currency scarcity has created shortages in other areas, with petrol shortages now a chronic problem too. Under pressure from all angles, CBN chairman Godwin Emefiele announced a new deadline is now February 10.

However, this forced three state governments to take the federal government to court over the matter. Last week, ruling in a case filed by the Kaduna, Kogi and Zamfara state governments, Nigeria's Supreme Court ordered the CBN not to end the use of old naira notes on the February 10 deadline it had previously set.

Caught between a rock and a hard place, President Buhari was unsure about what to do and last week delivered a nationwide address in which he extended the life of the old N200 notes. However, Governor El-Rufai had been rumoured to have warned banks ion Kaduna State that they mist tale N500 and N1,000 too of face severe sanctions.

Denying this was the case, the Kaduna State Urban Planning and Development Agency (Kasupda) said it is not true that the state government ordered the demolition of banks that failed to comply with the directive to accept the old N500 and N1,000 from customers. Governor Nasir El-Rufai, had, in a broadcast on Thursday last week asked residents to stay calm and peaceful and support the lawful means being utilised to solve the cash scarcity challenge, assuring they would not lose their money.

He said: “Let no artificial deadline frighten you. Whether you live in towns, villages or in our isolated rural communities, do not feel stampeded to deposit your old notes in the banks. Hold on to them, continue to use them as legal tender as ordered by the Supreme Court of Nigeria.”

Earlier today, news emerged that the governor had ordered banks to be marked for demolition, with trucks stationed in from of the banks. However, a Kasupda spokesman said that there was no directive from the state government to demolish any bank.

He added: "There is no instruction to bring down any bank that refuses to comply with the order asking banks to accept old naira notes from customers in the state. It was last year that those operating commercial businesses were asked to come and settle their ground rents and  banks were not even included in the directive.”