Naira Redesign: Abuja residents recount ordeal in accessing their money
On October 26, 2022, the Governor of the Central Bank of Nigeria (CBN), with the approval of the President Muhammadu Buhari(rtd.), announced the naira redesign policy entailing the issuing of new naira notes to replace the existing N200, N500 and N1,000 notes.
The old notes were expected to be out of circulation, thereby ceasing to be legal tenders in the next 20 days.
Even though there has been an extension and the CBN has said collection of old notes would continue, the redesign has been greeted with criticisms by many Nigerians who believed the policy was intended to bring hardship to people.
Many Nigerians have been experiencing difficulties in depositing their old banknotes. Despite the assurance given by the CBN of the availability of the new naira notes, most commercial banks in the country are still giving customers old notes.
After series of complaints by many stakeholders in the country, CBN bowed to pressure and extended the use of the old naira notes till February 10.
Are commercial banks complying with the instructions of the CBN?
The Central Bank of Nigeria (CBN) has warned that it will penalise banks that fail to comply with its directive to dispense the newly redesigned N200, N500 and N1,000 notes through their Automated Teller Machines (ATMs).
The warning was issued by the CBN Director, Currency Operations Department, Ahmed Umar, during a training session for state directors of the National Orientation Agency (NOA) in Abuja.
Sequel to this order by the CBN, Neptune prime has gone round some of the Banks in and around Abuja to observe the level of compliance.
In an interview with Mr Ayodeji, a Point of Sale operator (POS), he said had been to the banks to withdraw money for his business but the ATM refused to dispense cash so he decided to patronise ‘money hawkers’ where he paid 5000 nairas to swap 50,000 nairas. When asked if could tell the reporter where he swapped the money, he said, “Ah! it is a secret, I can not tell you where the place is”.
However, an insider of another Bank in Wuse 2 along Banex plaza, said to the reporter, “In our bank, we don’t have money to give to customers”. When he was reminded about the amount CBN claimed to have disbursed to the banks he debunked the claim and said “even when they send money it is usually very little and when we disburse it to the customers, we would remain without money to give out just as we are now.”
READ ALSO: CBN will continue to redeem old naira notes after deadline, Emefiele tells Reps
In another bank within the area, a customer on the queue waiting to withdraw money from the ATM told the reporter that the ATM was dispensing money; and when asked if the disbursement is in line with the CBN directives, he said, “Yes, they don’t give old naira notes but new ones, I was here yesterday and that is why I came here again to get money.”
Are the new naira notes accessible to all?
“I have been in the bank since 5 am. It’s a long queue and I met others there. Around 9 am, we were told that the person responsible for registered agent cash was not on site. I came back to my POS stall and found people waiting for me to bring cash. There’s shortage almost everywhere”, said Ismail Lawan, a POS agent in Utako Market, as he lamented his ordeal to our correspondent.
“I don’t think the 10 days extension will be enough to get the common man out of this hardship. The connected are getting the new notes conveniently, and spraying it at weddings and parties, while we are here struggling to access it at banks and POS. We are now charged 300 for 10k new naira note, while it was 100 naira for 10k before”, Aisha Utako noted.
“I went to a POS point to withdraw money and was told to pay an extra one thousand naira before I’ll be given the new naira notes. I left to withdraw from ATM points but couldn’t, due to the long queue I met”. Maryam Sulaiman complained.
“The current situation has put Nigerians severe hardship. The struggles people go through every day to deposit the old notes before they seize to be legal tender and to get the new notes for their day-to-day activities as some business owners insist on collecting only the new notes is tiring.
“While people go to banks and queue for hours before getting the cash, the POS owners use this as an opportunity for making money with the excuse that it’s hard for them to get cash at this time thus, they charge people high by making life even more difficult for an average Nigerian. 5,000naira charges that used to be 100naira are now 500naira while 10,000naira is now 1,000naira.
“Making transactions on phone is another setback as you can try multiple times and the network will keep interrupting. The transaction might be successful and you will be debited but the other person might not receive the alert, hence the need for you to go to the bank to complain which is also exhausting.” Faiza Doma explained.
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