New Naira Notes: Terror as CBN insists on January 31 closing date

Because the archaic N200, N500 and N1, 000 notes are now being rejected across the nation, CHIJIOKE IREMEKA writes on the agitation of Nigerians who are racing against time to swap the naira notes with the redesigned versions sooner than the January 31, 2023 closing date issued by the Central Financial institution of Nigeria (CBN), which has refused to grant extension of time despite pressures from different quarters in the society.

Nigerians, banked or unbanked, are at insist racing against time to rid their purses and wallets of N200, N500 and N1, 000 notes, following the insistence by the Central Financial institution of Nigeria (CBN) on phasing them out because the nation’s upright gentle on January 31, 2023. Nonetheless the redesigned notes intended to interchange the archaic ones are yet to be viewed or felt by an massive likelihood of the electorate.

After the CBN Governor, Godwin Emefiele, on October 26, 2022 launched that original naira notes will seemingly be launched to interchange the hot 200, 500, and 1, 000 notes, the apex financial institution additionally gave Tuesday January 31, 2023 as closing date for phasing out the archaic versions of the affected naira notes.

The apex financial institution, in its commitment to the closing date, additionally sent a reminder to Nigerians, insisting that January 31, 2023 closing date remained sacrosanct as long as phasing out of the archaic versions of the redesigned notes is eager and, on account of this truth, instructed all Nigerians to come lend a hand your complete archaic N200, N500 and N1, 000 notes in their possession to their deposit banks for replacement before the closing date.

“The archaic sequence of N200, N500 and N1, 000 notes will stop to be upright gentle by January 31, 2023. Here’s a reminder to the lifelike public. You would also very smartly be instructed to come lend a hand them to your banks before the closing date,” the apex financial institution talked about.

In furtherance to this pursuit, the CBN launched Money Swap platform, a programme intended to magnify the speed of circulation of the original banknotes and magnify awareness sooner than the closing date for demonetisation of the archaic notes. It additionally affords a likelihood for Nigerians to swap archaic notes with original ones at significant agents centres across the nation.

The intervention, which targets residents in rural areas and folks with itsy-bitsy accumulate admission to to financial companies to scurry up the technique of circulation of the redesigned notes and mopping up of the archaic ones, is a joint initiative of the CBN, Deposit Money Banks (DMBs) and significant agents.

Regardless of these interventions, the specified extinguish consequence is yet to be executed. There is an allegation of sabotage levelled against banks in fresh weeks as most of them overlooked a regulatory directive to prevent giving out archaic banknotes, especially through the automated teller machines (ATMs).

This caused the Senate to call for an extension of the closing date for swapping of naira notes till the stop of the main half of of the year, however the financial authority talked about there became once no compelling motive to prolong the closing date, with more than one channels, including agents running in rural areas, for Nigerians to come lend a hand the banknotes.

Emefiele additionally argued that the 100 days, from when the policy became once launched till January 31, equipped ample home windows for Nigerians with real income their properties to come lend a hand the the same. In line with him, the programme enables electorate in rural areas or those with itsy-bitsy accumulate admission to to formal financial companies to alternate archaic naira notes for the redesigned ones.

The CBN boss talked about it became once worrisome that 85 per cent of the currency in circulation is being hoarded by Nigerians. He urged the electorate to proceed to their banks to deposit their naira notes, including that the deposit price will seemingly be waived for transactions below N150, 000.

Emefiele added that the redesigning of naira notes would relief curb counterfeit notes, as smartly as bog down ransom price to terrorists and kidnappers.

In a circular on cash swap signed by the Director of Banking Supervision Department, Haruna Mustafa, the CBN additional explained that agents shall alternate a maximum of N10, 000 per particular person, noting that portions above N10, 000 can also very smartly be treated as cash-in deposit into wallets or financial institution accounts primarily based totally on the CBN’s cashless policy.

“Financial institution Verification Number (BVN), National Identification Number (NIN), or voter playing cards information of the prospects should always be captured as indispensable as that that you would possibly perchance mediate of. To promote financial inclusion, this service is additionally accessible to someone with out a checking fable. Agents can also, on demand right away start a wallet or fable, leveraging the CBN Tiered Know Your Customer (KYC) framework.

“This would possibly perchance perchance perchance even make certain that this category of the populace are ready to alternate or deposit their cash seamlessly with out taking unnecessary likelihood or incurring undue price,” the circular talked about.

Moreso, the financial institution wired that agents shall sensitise prospects on wallets/ checking fable opening and different channels for conducting electronic transactions, noting that designated agents are to salvage the redesigned notes from DMBs primarily based totally on the Revised Money Withdrawal Limit policy.

It significant that while the agents are approved to price cash-out charges for the cash swap transactions, agents are prohibited from charging any additional commissions. “Principals (significant agents, cell cash operators (MMOs) and DMBs) shall be held responsible for his or her agents’ adherence to the guidelines. Money Swap agents will be readily identifiable in all local governments, in particular those in the agricultural residing,” the circular read.

The apex financial institution additionally talked about any commercial financial institution that refused to dispense the original notes either at ATM or counter will seemingly be sanctioned. The circular ‘BSD/DIR/PUB/LAB/15/022, became once addressed to DMBs, Cell Money Operators (MMO), Noteworthy Agents and Agent Naira Redesign Policy.

The CBN talked about: “In furtherance of its Naira Redesign policy, the CBN has sustained its nationwide awareness/sensitisation programmes, enforced rapid assortment of the original notes at CBN branches by the DMBs and mandated issuance of the original notes through Computerized Teller Machines (ATMs) to make optimistic distribution is beautiful, transparent and evenly unfold across the nation.”

The financial institution additionally suspended charges on above-restrict cash deposits and known as on commercial banks to prolong operations till weekends to enable folks to come lend a hand income their possession, however there looks to be sabotage on the section of banks in fresh weeks as most of them include overlooked a regulatory directive to prevent giving out archaic banknotes.

The Guardian learnt that section of the explanations the original notes are now not in circulation is that the commercial banks take cash from optimistic politicians, fraudsters as smartly as cash vendors and affords them the original notes, which would possibly perchance perchance also silent had been stocked in their ATMs. It became once additionally learnt that the banks consume the original naira notes to compensate and reward their mega prospects.

A businessman, who has light over N5 million of the redesigned naira notes from one of the crucial original generation banks in Lagos, confirmed that the original notes are in the commercial banks however the banks consume them to favour their VIP prospects, as alleged by the CBN.

It became once additional learnt that many those who stacked cash in their properties for future consume are now spending them on capital projects, especially building affords.

Throughout The Guardian’s visits to a likelihood of ATM machine galleries around Mushin, FESTAC, Egbeda and Lagos Island Lagos Dispute, among different areas, the machines had been viewed meting out archaic naira notes as at Monday and Tuesday this week. Some ATMs had been meting out each and each original and archaic banknotes on Tuesday.

A girl, in most cases known as Juliana Ogundipe, who withdrew N5, 000 at an ATM in Mushin instructed The Guardian that she received N2, 000 of the original notes and N3, 000 archaic notes. She became once additionally offended that she wished to withdraw N50, 000 however became once easiest paid N20, 000 while the message that popped up read, “You would also include reached your maximum day-to-day withdrawal restrict.”

Financial institution prospects who are terrorized in regards to the shortage of the redesigned N1, 000, N500 and N200 notes in DMBs and Comparatively loads of Financial Establishments (OFIs), puzzled the reason for continuing to present their prospects with the archaic notes, which would possibly perchance perchance perchance perchance stop to be upright gentle by Tuesday if there is no extension of the closing date.

In line with a civil servant, Ibrahim Abbas, the banks manufacture now not include any motive to load their ATMs with the archaic notes after prospects include deposited them in their accounts as instructed by the CBN.

“They talked about they are redesigning some denominations of the Naira, and that Nigerians can also silent take their archaic notes to the banks and initiate getting the redesigned ones. Nonetheless what we silent accumulate from the ATMs, and even from the financial institution counters are the archaic notes. Here’s now not trusty,” he talked about.

Every other financial institution buyer, Mr. Suleman Aliu, talked about the prolong in flooding the banks with the original Naira notes conclude to the closing date intended that some folks would lose some of their cash. “If the closing date is January 31, which is three days from at the moment, and the banks are silent supplying the archaic notes, it potential they need some folks to lose their cash, ” he talked about

A Level of Sale (PoS) operator, Gabriel Asika, talked about the CBN wanted to develop better in its provide of the original notes. “CBN is telling us that there are ample redesigned notes in vaults of the DMBs, however the banks are announcing that they manufacture now not include ample provide of the notes. One thing is now not including up,” he talked about.

The Head, Inclusion for all Initiative, Chinasa Collins-Ogbuo, talked about: “ About 54.2 per cent of Nigeria’s unbanked uncomfortable indicated their preference for saving their cash in a get space at home or carrying it around, indicating that more than 50 per cent of this section of the population would possibly perchance perchance lose their savings if they are unable to alternate archaic notes for model original notes.”

On the many hand, the Chief Executive Officer of Diary Hills Restricted, Kelvin Emmanuel, talked about CBN’s insistence on the closing date presentations a premeditated stance by the apex financial institution. “The insistence of the CBN Governor on the January 31 closing date is a tag that there is an ulterior motive for making notes that are at insist in circulation illegal from February 1.”

An financial analyst, who is additionally the Lead Director of the Centre for Social Justice (CSJ), Eze Onyekpere, talked about the CBN governor perceived to be insensitive to the yearnings of Nigerians alongside with his insistence on no closing date extension if three days to the closing date, folks are silent carrying about archaic notes on account of the shortage of original ones.

Additionally reacting, National Coordinator, Human Rights Writers Affiliation of Nigeria (HURIWA), Emmanuel Onwubiko, talked about the January 31 closing date became once now not workable and feasible below any condition.

He, on account of this truth, sought a one-year extension closing date by the CBN for all Nigerians, especially those in remote and unbanked areas to alternate their archaic notes for the original ones, citing the instance of the UK (UK), which unveiled its original notes on December 20, 2022 however gave the closing date of 2024 for banks to silent swap archaic pound sterling for the original ones.

A dilapidated Senate Leader, Ali Ndume (APC, Borno) lamented the uncomfortable supplyof the redesigned notes, announcing that as a serving member of the upper legislative chamber, he had now not viewed the original notes.

“I, as a senator, include now not viewed the original notes. I easiest saw the original gift once in December once I moved the inch and I talked about I really include now not viewed the cash. That became once when one of my colleagues confirmed me the N1, 000 gift. I really had been withdrawing cash from the financial institution since then, and include never received original notes from the financial institution.

“Even closing Friday, I made withdrawal from the financial institution, and so they gave me archaic notes. After which surprisingly, now I heard that in some areas, they are rejecting archaic notes. In numerous phrases, the CBN’s closing date has really been implemented in remote areas over apprehension of folks shedding their cash. This panic goes to motive financial chaos.”

On the chaos already on the streets, Bayo Olorunpoda, a media govt, talked about on Tuesday: “I visited 5 banks at the moment and now not one of the crucial ATMs dispensed cash. The reason became once that banks didn’t include to load archaic naira notes in obedience of CBN instruction, yet they didn’t include ample original notes.

“Furthermore, most ATMs dispense N500 and N1, 000 notes, either archaic or original. How will CBN make optimistic the circulation of the original N200 notes, which would possibly perchance perchance also additionally be in excessive search files from for cash transactions, when it doesn’t dispense from the ATM?”

The Dwelling of Representatives held a assembly with the chief govt officers of enterprise banks. The assembly came six days to the closing date issued by the CBN to total the validity of the archaic notes.

The Dwelling space up an ad hoc committee chaired by the Leader, Ado Doguwa. The choice followed the consideration and adoption of a inch moved by Sada Soli below Matters of Pressing Public Importance, urging the CBN to prolong the closing date on the consume of the archaic notes to six months. The Speaker of the Dwelling, Femi Gbajabiamila talked about the Dwelling wanted to interface with the heads of enterprise banks to realise the accurate disaster.

The Senate often in most cases known as for extension of the closing date following the adoption of a inch moved by Sodiq Umar (APC, Kwara), who argued that the policy became once affecting the oldsters negatively.

Speaking in toughen of the inch, Abiodun Olujimi (PDP, Ekiti) talked about that most Nigerians had now not received the different to the contact the original notes, including that the timeline for the implementation of the policy became once too rapid.

Nonetheless the CBN governor insisted on Tuesday that there had been no compelling causes or plans to shift the January 31, 2023 closing date.

Supporting the CBN’s space, Rammel Onodele talked about: “There is now not any such thing as a motive for any extension, someone who has real notes by now has had the different to alternate them. Making comparisons with global currencies love Dollars, GPS and Euro would now not make any sense since it would take years for such currencies in the fingers of folks worldwide to be known as lend a hand.

“Here’s now not the case with Nigeria; it does appear that there is a deliberate efforts by folks with looted naira to frustrate every executive effort. There will be no extension. The CBN can also silent stand its ground regardless of what the Senate and Dwelling of Representatives are announcing. Nigerians include suffered significant tribulations on account of these folks.”

Historical previous Of Nigeria’s Currency Designs

IN the pre-colonial generation, different cultures historical a vary of items as technique of alternate. These included cowries, manilas, beads, bottles and salt.

The main predominant currency issued in Nigeria became once undertaken sequel to the colonial ordinance of 1880, which launched the Shillings and Pence because the upright gentle currency in British West Africa. The gadgets of coins managed by the Financial institution of England had been one shilling, one penny, 1/2 penny and 1/10 penny and had been distributed by a non-public financial institution, the Financial institution for British West Africa till 1912.

From 1912 to 1959, the West African Currency Board (WACB) issued the main space of banknotes (insert hyperlink) and coins in Nigeria, Ghana, Sierra Leone and the Gambia. The supreme banknote denomination became once one pound, while the one-shilling coin became once the supreme coin denomination.

On July 1, 1959 the CBN issued Nigerian currency banknotes, while the WACB-issued banknotes and coins had been withdrawn. It became once now not except July 1, 1962 that the currency became once modified to mediate the nation’s republican residence.

The banknotes, which bore the inscription, Federation of Nigeria, now had ‘Federal Republic of Nigeria,’ inscribed on the head. The notes had been again modified in 1968 following the misuse of the currency banknotes at some level of the civil battle.

Sequel to the choice by the executive to alternate from the metric to decimal, the title of the Nigerian currency became once modified in January 1973. The main unit of currency which historical to be £1 ceased to exist and the one naira which became once the same to 10 shillings grew to develop into the predominant unit, while the minor unit became once known as the kobo, a hundred of which made one naira.

On February 11, 1977, a brand original banknote with the price ₦20 became once issued. It became once the supreme denomination launched on the time as a results of the enlargement of the economy, the preference for cash transactions and the necessity for comfort.

The banknote became once the main in Nigeria to undergo the portrait of a famed Nigerian citizen, the boring Head of Dispute, Not unusual Murtala Ramat Muhammed (1938-1976) who became once the torchbearer of the Nigerian revolution in July, 1975. The gift became once issued on the 1st anniversary of his assassination as a becoming tribute to him. He became once declared a national hero on October 1, 1978.

On July 2, 1979, original currency banknotes of three denominations – ₦1, ₦5 and ₦10 – had been launched. These notes had been of the the same dimension i.e. 151 X 78 mm because the ₦20 gift issued on 11th February, 1977. To facilitate identification, distinctive colors had been historical for the many denominations.

The notes bore the portraits of three celebrated Nigerians, who had been declared national heroes on October 1, 1978. The engravings leisurely the notes reflected different cultural aspects of the nation.

In April 1984, the colors of your complete banknotes in circulation had been modified other than the 50 Kobo banknote to arrest the currency trafficking prevalent on the time. In 1991, the 50K and ₦1 had been each and each coined.

In response to the enlargement in financial activities and to facilitate an atmosphere pleasant funds machine, the ₦100, ₦200, ₦500 and ₦1000 banknotes had been launched in December 1999, November 2000, April 2001 and October 2005.

On February 28, 2007, as section of the industrial reforms, ₦20 became once issued for the main time in polymer substrate, while the ₦50, ₦10 and ₦5 banknotes as smartly as ₦1 and 50K coins had been reissued in original designs, and the ₦2 coin became once launched.

On September 30, 2009, the redesigned ₦50, ₦10 and ₦5 banknotes had been converted to polymer substrate following the successful performance of the ₦20 (polymer) banknote. Thus, all lower denomination banknotes had been now printed in the polymer substrate.

In the extinguish, the CBN, as section of its contribution in direction of the accumulate collectively of the nation’s fiftieth anniversary of Independence and 100 years of its existence as a nation, issued the ₦50 commemorative polymer banknote on 29th September 2010 and the N100 commemorative banknote on nineteenth December 2014.

At the original time, the CBN is crooked on phasing out the three redesigned notes in three days time to stem the tide of insecurity in the nation, relief the lifelike elections and assign the loss of life economy.