Naira Scarcity: Latest CBN News On Naira Notes Today March 22nd 2023
GoldenNewsNg has compiled the latest news on new Naira notes. This means the latest updates on the Naira crisis in Nigeria can be accessed on this page.
Some normalcy has returned despite persistent queues in some banks and ATMs across Nigeria.
Bank officials say the Central Bank of Nigeria (CBN) supplied more old naira notes than the newly redesigned N200, N500, and N1,000 notes.
The development follows the ruling of the Supreme Court on March 3, 2023, which extended the validity of the old naira notes till December 31, 2023.
According to reports, banks began simultaneous dispensing of the old naira notes over the counters and via ATMs a few days after CBN issued the directive.
Traders, Transporters, petrol stations, and others have begun accepting the old naira notes after initial skepticism.
Banks say they need more new naira notes as both ATMs and bank tellers dispense more of the old naira notes.
Bank officials say they have not had new supplies of the new naira notes since CBN reintroduced them into circulation.
A banker with one of the new-generation banks said that CBN had paused the circulation of old naira notes and only resumed issuing old notes as directed by the Supreme Court.
The President, Major General Muhammadu Buhari (retd.), on Saturday said the scarcity of naira notes reduced the incidence of vote-buying. The President, after voting in Daura, Katsina State, urged Nigerians to collect money offered to them by vote-buyers but vote their conscience.
The naira scarcity had led to crisis nationwide, in which case many Nigerians lamented their inability to buy necessities or move around. The Central Bank of Nigeria had come under heavy criticism for the policy, which many described as ill-timed and poorly implemented.
Buhari told journalists after voting at Ward A, Sarkin Yara Polling Unit, 003, in Katsina, “I am aware that the money is not there like before for people to sway voters, like they used to do. And if they bring out money, the people should pocket it and still vote their conscience.”
The Senior Special Assistant to the President on Media and Publicity, Garba Shehu, disclosed this in a statement on Saturday. The statement was titled ‘Nigerians know we mean what we say, they will vote for us again, says President Buhari.’
The President was quoted as saying his regime had “diminished” the practice of vote-buying. He boasted that the All Progressives Congress would emerge victorious in the governorship and state Assembly elections nationwide.
Barely three days after the Central Bank of Nigeria declared old N1,000, N500 and N200 notes as legal tender, Deposit Money Banks say they are beginning to run out of the old currencies.
The development led to severe hardship and pain for several bank customers seeking to withdraw funds on Wednesday. The CBN had on Monday directed banks to pay out and accept the old notes from their customers.
This came after President Muhammadu Buhari, said he did not stop the CBN and the Attorney General of the Federation Office from complying with the Supreme Court judgment ordering that old naira notes should remain legal tender till December 31, 2023.
However, commercial banks which began the disbursements of old N1,000, N500, and N200 notes to their customers on Tuesday revealed on Wednesday that it had started running out of the old currencies.
This made several bank customers become stranded in banking halls as well as in major cities and towns.
While some bank officials said their stocks of old notes were beginning to run low, others said they had exhausted the old currencies in their vaults.
The Central Bank of Nigeria (CBN) led by Godwin Emefiele says the old N200, N500, and N1000 notes remain legal tender until December 31, 2023.
This online news platform understands that the CBN official statement on the acceptance of Old Naira Notes was announced by the CBN spokesperson, Isa Abdulmumin on Monday evening, March 13, 2023.
“In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023,” the statement reads.
“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.
“Consequently, all concerned are directed to conform accordingly,” the statement on the acceptance of Old Naira Notes added.
CBN has finally directed Nigerian Banks to accept Old Naira Notes.
GoldenNewsNg reports that the governor of Anambra State, southeast Nigeria, and former CBN Governor, Prof Charles Soludo, on Monday, March 13, 2023, confirmed that the Central Bank of Nigeria has asked commercial banks to dispense and accept old naira notes as deposits.
This online news platform understands that Professor Soludo, a former CBN governor, made this known in a statement he posted on his social media handles on Monday, March 13, 2023.
GoldenNewsNg reports that the Anambra Governor explained that the Governor of CBN, Godwin Emefiele gave the directive at a Banker’s Committee meeting on Sunday, March 12, 2023.
Governor Soludo, who revealed that CBN Governor Emefiele personally confirmed the directive to him, called on Anambra residents to report Nigerian banks refusing to accept the old notes.
Nigerian Governor has ordered the arrest of people rejecting Old Naira Notes in his state.
GoldenNewsNg reports that the Kogi State Government on Friday, March 10, 2023, ordered the arrest and prosecution of individuals and businesses rejecting the old naira notes.
This online news platform understands that the order is contained in a statement by Commissioner for Information, Kingsley Fanwo, who congratulated Nigerians on the “historic ruling of the Supreme Court”.
GoldenNewsNg had reported earlier that the Supreme court ruled last week that both the old and new naira notes remain legal tenders until December 31, 2023.
Fanwo explained that the Yahaya Bello administration joined other states to pursue the case to ease the hardship occasioned by the unavailability of cash.
The Commissioner for Information said it was unacceptable that some persons and businesses continue to reject the old notes, even after the court validated their use.
The Central Bank of Nigeria (CBN) said that both old naira notes and new naira notes are now legal tenders. This online news platform understands that the Acting Director of Corporate Communications CBN, Dr. Isa Abdulmumin disclosed this on Tuesday, March 7, 2023.
The CBN Director affirmed that commercial banks have started issuing both old and new notes to their customers.
But insisted that the apex bank is yet to issue an official statement.
He said, “Banks are paying old notes as well as new notes. They are all legal tender.
“Yes, the CBN has not issued an official statement on the issue. Anyone banks give to you, you can collect. We just want to make life easy for Nigerians.”
In compliance with the March 3 Supreme Court judgment, which extended the validity of the Central Bank of Nigeria, CBN, currency redesign policy to December 31, some banks across the country have started paying out the old N500 and N1,000 notes to their customers.
Findings, however, revealed partial compliance as some banks have not followed suit, maintaining that they are awaiting official directive from CBN to do so.
Three days after the Supreme Court verdict on the old Naira notes’ validity, a Senior Advocate of Nigeria, Emeka Etiaba, said President Muhammadu Buhari’s directive to the Central Bank of Nigeria Governor, Godwin Emefiele, would end the weeks-long currency crisis.
Emeka disclosed this on Monday during a Channels Television interview.
“The Federal Government has been directed by the Supreme Court, by inference its agency, in this case, the Central Bank of Nigeria.
“A statement, directive from President Muhammadu Buhari to the Governor of the Central Bank will work magic; it does not need to take one week”, he stated.
The Supreme Court of Nigeria, on Friday, 3 March 2023, ordered that old N200, N500, and N1,000 notes remain in circulation till December 31, 2023.
This online news platform understands that the apex court also nullified the Federal Government’s naira redesign policy, declaring it as an affront to the 1999 Constitution.
Justice Emmanuel Agim, who read the lead judgment, held that the preliminary objections by the defendants (the Attorney General of the Federation, Bayelsa and Edo states) are dismissed as the court has the jurisdiction to entertain the suit.
Citing Section 23(2)1 of the constitution, the court held that the dispute between the Federal Government and states must involve law or facts. The apex court further held that President Muhammadu Buhari in his broadcast admitted that the policy is flawed with a lot of challenges.
The recent economic cash crisis in Nigeria, caused by the naira redesign, political climate, and economic conditions, has increased bitcoin’s value proposition for average Nigerians. In Africa, bitcoin offers an indispensable financial safe haven.
The naira redesign is only the most recent catalyst magnifying the challenges faced by average Nigerians, a benevolent move to curb economic challenges and counterfeiting notes has resulted in a doubling down on the financial pressures faced by Nigerians.
Nigerians are currently facing record-high inflation at ~21%, a cash shortage of the newly redesigned naira notes, and an incoming administration that will determine the country’s course for the next few decades and the continent’s political landscape.
All eyes were on our country as citizens voiced their frustrations at the ballot on Saturday, and our Government continues to wrestle with its growing economic challenges.
Currency in circulation drops to N1.38tn – CBN
The total amount of currency-in-circulation in the country dropped from N3.29tn as of the end of October 2022 to N1.38tn as of the end of January 2023 as a result of the naira redesign policy of the Central Bank of Nigeria.
Figures obtained from the CBN showed this represents a drop of N1.91tn in the three-month period.
The Governor, CBN, Godwin Emefiele, had in October 2022, announced plans to redesign the old N200, N500 and N1,000 notes.
Emefiele also announced deadlines for Nigerians to swap their old with the new notes.
The banking sector regulator said, “Accordingly, all Deposit Money Banks currently holding the existing denominations of the currency may begin returning these notes back to the CBN effective immediately. The newly designed currency will be released to the banks in the order of first-come-first-serve basis.
“Customers of banks are enjoined to begin paying into their bank accounts the existing currency to enable them to withdraw the new banknotes once circulation begins.”
He decried the challenges associated with currency management including significant hoarding of banknotes by members of the public, with statistics showing that over 80 per cent of currency-in-circulation was outside the vaults of commercial banks.