CBN Authorises Bank to Commence Over-The-Counter Payment of New Naira Notes

The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, yesterday directed deposit money banks (DMBs) to commence payment of the redesigned naira notes over the counter subject to a maximum daily payout limit of N20, 000.

Emefiele also urged Nigerians to exercise patience, adding that the central bank was working assiduously to address the challenge of queues at Automated Teller Machines (ATMs) points across the country.

Emefiele, in a statement by CBN Director, Corporate Communications Department, Mr. Osita Nwanisobi, the central bank governor maintained that the CBN remained committed to ensuring the effective distribution of the newly introduced naira banknotes nationwide.

He said the central bank was aware of the queues at ATMs across the country and an upward trend in the cases of people stocking and aggregating the newly introduced banknotes they serially obtained from the cash dispensing machines for reasons best known to them.

The CBN further expressed worry over the reported cases of unregistered persons and non-bank officials swapping banknotes for members of the public, purportedly on behalf of the CBN.

The apex bank also expressed serious concern over the activities of persons who sell the newly redesigned banknotes as well as those who flagrantly abuse the legal tender by hurling wads of naira notes in the air and stamping on the currency at social functions, adding that the bank would prosecute them.

Nwanisobi said, “We wish to state unequivocally that, contrary to the practice of these unpatriotic persons, it is unlawful to sell the naira, hurl (spray), or stamp on the currency under any circumstance whatsoever.

“For the avoidance of doubt, Section 21(3) of the Central Bank of Nigeria Act 2007 (As amended) stipulates that “spraying of, dancing or matching on the naira or any note issued by the bank during social occasions or otherwise howsoever shall constitute an abuse and defacing of the Naira or such note and shall be punishable under the law by fines or imprisonment or both.”

“Similarly, Section 21(4) states that ‘It shall also be an offence punishable under Sub-section (1) of this section for any person to hawk, sell or otherwise trade in the Naira notes, coins or any other note issued by the Bank’”.

The apex bank disclosed that it was collaborating with the Nigeria Police, Federal Inland Revenue Service (FIRS), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU) to address the unpatriotic practice.

“We, therefore, warn Nigerians, particularly those at social functions such as birthdays, weddings, and funerals, to desist from disrespecting the naira or risk being arrested by law enforcement agencies,” the CBN director said.

The CBN had earlier directed commercial banks to suspend the disbursement of the new banknotes over the counter and instead, issue them via ATMs.

The CBN last month announced a 10-day extension of the January 31, 2023 deadline for the return of old naira notes following its currency redesign programme to February 10.

Emefiele had said the gesture was to allow for the collection of more old notes which are legitimately held by Nigerians and achieve more success in cash swaps, particularly in rural communities – after which all old notes outside the CBN lose their legal tender status.

Also, the apex bank, in compliance with Sections 20 (3) and 22 of the CBN Act, further offered a seven-day grace period beginning from February 10 to February 17, allowing Nigerians to deposit their old naira notes at the CBN after the February deadline when the old currency would have lost its legal tender status.

He said Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes, leveraging the Agent Naira swap initiative as well as the CBN senior staff nationwide sensitisation team exercise.

He said aside from those holding illicit/stolen naira in their homes for speculative purposes, the CBN remained determined to give all Nigerians that have naira legitimately earned and trapped, the opportunity to deposit their trapped monies at the CBN for exchange.

Emefiele, appealed to Nigerians to work with the bank to ensure a hitch-free process for the implementation of the naira redesign programme, adding that the CBN staff are currently on mass mobilisation and monitoring together with officials of the EFCC and ICPC to achieve the desired objectives of the exercise.

Emefiele said, “From the onset of this currency redesign programme, we made it clear that for 19 years, the CBN hasn’t been able to conduct this important aspect of its mandate; whereas, this should normally have been done within five to eight years window.”

He said the central bank’s aim was mainly to make its monetary policy decisions more efficacious, adding that as a result of the recent policy interventions including the currency redesign and cashless policy.

“We’ve started to see inflation trending downwards and exchange rates relatively stable.”

The CBN governor also pointed out that the apex bank aims to support the efforts of security agencies in combatting banditry and ransom-taking in Nigeria through the currency redesign project, stressing that the military is making good progress in this regard.

Meanwhile, the federal government has described pains being experienced by the people in their bid to swap the old naira for the re-designed ones as regrettable and should be seen as a temporary sacrifice for the nation to achieve long-term economic sanity.

Finance, Budget and National Planning Minister,  Mrs. Zainab Ahmed, who stated this at a news briefing at the State House in Abuja, also said President Muhammadu Buhari was not happy about the situation.