Six Reasons Why CBN May Extend Depositing Old Naira Notes Beyond January 31, 2023 Deadline

• The Central Bank of Nigeria might be forced to extend the deadline date for depositing the old naira notes
• This will be an unexpected turn off even given the policy trend from NIN registration to cash withdrawals among other public policies
• The old naira notes are expected to stop circulation in 25 days' time and there are six reasons why it will be extended

Nigerians have only 25 days as of today, Thursday, January 5, 2022, to return old naira notes to the bank.

The apex bank has made no indication to extend or amend the date for depositing old naira notes.

This is Despite pleas from Nigerians, various groups, lawmakers, and organizations, the CBN has expressed consistently that the deadline is sacrosanct.

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However, there are various signs and events that show it will be forced to adjust the date in the coming days as the deadline nears.

ATM still dispenses old notes

Despite the deadline, just 25 days away commercial banks' automated teller machines (ATM) are still mostly dispensing the old Naira notes.

Although the policy is set to kick off fully from January 9, 2023, Nigerians are not being eased into the new normal.

Banks do not have enough of the new naira notes

Legit.ng had earlier reported on how customers who had approached the banks for the new notes were left disappointed.

At some of the banks, staff at the teller points were forced to mix the new notes with the old ones.

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Many Nigerians are yet to see the new notes

The new notes started circulating on December 15, 2022, more than 20 days later millions of Nigerians are yet to feel or spend the new notes.

This development means for persons living in rural areas or remote parts of Nigeria and without internet can not tell what the new notes look like.

Lack of acceptance

What is a currency without acceptance and this is the fate of the new naira notes?

Due to its scarcity and rumors of fake notes in circulation, many Nigerians are yet to fully accept the new notes.

Legit.ng has provided several reports of bus Conductor, market women, traders, and hawkers rejecting the money.

Poor electronic infrastructure

Although there has been a significant increase in the use of electronic means for transactions, the challenges from failed transactions to delay transactions, network issues and difficulties reaching out to customer care for quick assistance will force the CBN to adjust the date.

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Recently, the CBN said it received 2,432 complaints against financial institutions in the first six months of 2022.

According to the report, the majority of the complaints were on electronic/card issues, fraud, and account management, the Punch reports.

This is huge when the figure is added to the huge number of Nigerians who still prefer to go to the bank for cash withdrawal for fear of fraud.

Pressure

The Senate has joined other Nigerians in calling on the apex bank to extend the deadline for the return of the old currency from January 31, 2023, to June 30, 2023.

The resolution of the Senate was a sequel to a motion titled, “Urgent need to extend the withdrawal of old currency from circulation,” sponsored by former Senate Leader, Senator Ali Ndume, APC, Borno South.

ThisDay reports that Ndume noted that the timing of the policy was wrong while stressing that the new notes are not in circulation even in cities not to talk of the rural communities.

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What next

Although the CBN have the unitary power to decide, however, the aforementioned issues indicate that the January 31, 2023 date will likely change.

Banks beg Nigerians to avoid a last-minute rush to deposit old notes

Meanwhile, in another report, Nigerian banks have sent out messages to customers as the deadline for returning old naira notes gets closer.

Ecobank went even further, increasing the amount of interest a customer will get on their savings.

EcoBank for example noted that measures are in place in all branches to ensure seamless, easy, and stress-free cash deposits by customers.

Source: Legit.ng