CBN threatens to sanction banks dispensing old naira notes
The Central Bank of Nigeria, CBN, has threatened to sanction commercial banks still dispensing old naira notes.
The Abeokuta branch Controller of the CBN, in Ogun State, Lanre Wahab, on Thursday after engaging with market women and men at Lafenwa Market in Abeokuta, the Ogun state capital, said the Apex bank would not hold anything back from placing severe sanction on any commercial banks found wanting.
The CBN had introduced the new N200, N500, and N1,000 notes and gave a January 31st deadline for the phasing out of the old notes.
“They are going to be penalised wherever we still find old notes that have been redesigned, N200, N500, and N1,000. Any bank that is found still issuing or dispensing them will get sanctioned by the Central Bank of Nigeria,” he said.
Wahab said the CBN will soon commence spot checks on Automate Teller Machines ATMs, to ensure compliance by banks.
He said any bank that is sanctioned would have no excuse as the the CBN had since January 13th directed commercial and deposit banks to stop issuing the old notes to customers.
Wahab enjoined Nigerians, particularly residents of Abeokuta to seize the window of opportunity provided by the CBN to exchange the old notes for new ones before the expiration of the deadline.
Embrace the new naira notes
Central bank of Nigeria (CBN), visited Kano major markets to sensitize traders on the new naira notes.
They include Galadima, Sabon Gari, Wapa, Kwari and Kofar Wanbai Markets.
Speaking during the visit, the branch controller CBN Kano, Alhaji Umar Biu, urged traders to embrace the new naira notes, by visiting their banks and other financial institutions, to exchange the old notes.
He said, the redesign of the naira notes was aimed at addressing corruption, inflation as well as boosting the nations economy.
The branch controller stressed that, the old naira notes are still valid till 31st January 2023, saying that the Apex bank, had issued the new naira notes to banks and financial agents, to ensure adequate circulation.
“CBN agents are going round to ensure banks comply with the directives of dispensing the new notes via ATM. ” He said.
Also speaking, the state director, National orientation agency (NOA) Kano office, Alhaji Salisu Kutama, charged traders to desist from rejecting the old naira notes before the January 31st deadline.
He cautioned business owners to avoid exchanging their old naira notes, from unverified financial institutions, as fraudsters have started printing fake notes to swindle unsuspecting Nigerians.
Appeal for extension of deadline
In their separate remarks, Chairmen of Galadima, Sabon Gari, Wapa, Kwari and Kofar Wambai markets association, Alhaji Mustapha, Alhaji Saleh Umar Kura, Alhaji Abba Muhammad Bello , identified inadequate circulation of new notes as a major hindrance to business activities.
They noted that, traders in the rural areas do not possess bank accounts to deposit their cash, while others receive goods from major marketers on credit and present cash for payments.
According to them, “Commercial banks have given us a deadline of January 22nd as the last day for collection of old naira notes.”
The market Chairmen, appealed to the federal government and relevant stakeholders, to consider the plight of business owners and possible extension of the deadline to achieve the desired objectives.
Radio Nigeria reports that, the central bank of Nigeria (CBN), had set January 31st as the last day the old N200, N500 and N1,000 would cease to be legal tenders.
Reporting by Khadija Aliyu and Oluwaseyi Ajibade; Editing by Abdullahi Lamino