Following the Naira Scarcity in Nigeria, GoldenNewsNg has compiled Latest CBN News and Update on Naira Notes Today 23rd April 2023.
Naira Scarcity: NLC Renews Pledge To Roll Back Anti-People Policies As Queues At Banks Persist
Despite the Nigeria Labour Congress (NLC) giving a two-week grace period to the Central Bank of Nigeria (CBN) and commercial banks to make cash available to Nigerians, there still appears to be a hitch in the normal availability of cash. Bank customers in Abuja were seen struggling through long queues to gain access into banking halls for withdrawals as the Automated Teller Machines (ATM) were not dispensing cash. An Abuja resident, Lawrence Audu, said he had been trying to get cash for two days but to no avail. The NLC has set up a Joint Committee to monitor and ensure sustainable compliance by the CBN towards ending the cash crunch and removing the siege on Nigerians. The congress has threatened to embark on a nationwide strike without warning if the cash situation degenerates.
Naira Scarcity: Farmers beg Buhari regime to compensate them for losses
The All Farmers Association of Nigeria (AFAN) has called on the government to compensate farmers for losses suffered during the implementation of the Central Bank of Nigeria’s naira redesign and cash crunch policy. The farmers have suggested that the compensation could be in the form of grants, inputs, fertiliser and farm implements. AFAN’s members were severely affected during the implementation of the policy, with poultry farmers being the most affected. AFAN has urged farmers not to be discouraged by recent happenings in the economy but to go back to the farms and support government policies to boost food production and self-sufficiency. The farmers have also called on the government to properly study the policy and its implementation before reintroducing it.
Naira Scarcity: How Small Business Owners Are ‘Recovering’ From Impact
Entrepreneurs in Lagos have shared how they recovered from the adverse effects of a cash crunch caused by a scarcity of new Naira notes. The scarcity of new notes caused limited funds for businesses, especially those heavily reliant on cash, and led to low sales in the first quarter of the year. The cash crunch was caused by the introduction of a redesigned policy of the currency by the Central Bank of Nigeria to combat counterfeiting and manage inflation. However, the implementation of the policy was flawed, and the new notes were not readily available, leaving many Nigerians stranded. The Supreme Court eased the hardship faced by millions of citizens and businesses in March by ruling that the old N200, N500 and N1000 notes remain legal tender until December 31, 2023.
In recent news from Nigeria, the Central Bank of Nigeria (CBN) has announced plans to close bank accounts not linked to Bank Verification Numbers (BVN) across deposit money banks. This has led to an uptick in new registrations, with banks reporting a massive rush by customers. The move is aimed at cleaning up the sector and reducing financial fraud. The CBN has been working with the Nigeria Inter-Bank Settlement System (NIBSS) to address the increasing fraud incidences in the financial sector.
The BVN is a unique identifier that links a person to bank accounts across financial institutions in Nigeria and is issued or required at the point of bank account opening. BVN gives account owners a verifiable identity across the Nigerian banking system and protects their accounts from unauthorized access. The recent policy pronouncements by the apex bank have sparked an increase in new registrations, as customers rush to comply with the new guidelines.
In addition to the new BVN regulations, the CBN has also issued new guidelines to commercial banks on dormant accounts. The guidelines state that accounts that have received no deposit or withdrawal for upwards of one year will be considered dormant. The CBN will open a pool account to hold all funds left in such dormant accounts. This move is aimed at encouraging customers to update their bank records and ensure that their accounts remain active.
The CBN’s Director of the Risk Management Department and Chief Risk Officer, Blaise Ijabor, has stated that the bank’s aim is to clean up the sector and reduce the incidence of financial fraud. The move is expected to drive new BVN registrations by people whose accounts are not linked to BVN and encourage them to update their bank records. The CBN’s efforts are commendable and are likely to improve the integrity of the financial sector in Nigeria.
According to newly released data from the Nigeria Inter-Bank Settlement System (NIBSS), the number of individuals with Bank Verification Numbers (BVN) in Nigeria has reached 57 million as of April 9, 2023.
However, despite the Central Bank of Nigeria’s (CBN) announcement that it would shut down bank accounts not linked with BVN, registration for new BVN has slowed down since the beginning of 2023. In the last three months of 2023, banks in Nigeria only recorded 500,000 new BVN enrolments, which is significantly lower than the average of 400,000 monthly registrations in 2022.
As of December 2022, the BVN record stood at 56.5 million. NIBSS has stated that as of December 2021, active bank accounts in Nigeria were 133.5 million, with data for 2022 yet to be released.
The BVN is a unique identifier that links a person to bank accounts across financial institutions in Nigeria and is issued or required at the point of bank account opening. It gives account owners a verifiable identity across the Nigerian banking system and protects their accounts from unauthorized access.