New Naira Notes: Banks To Pay N1m Daily Fine as CBN Steps Up Effort To Ensure Distribution

New Naira Notes: Banks To Pay N1m Daily Fine as CBN Steps Up Effort To Ensure Distribution

  • Commercial banks have received a memo from the Central Bank of Nigeria advising them about the new naira notes
  • Several days before the deadline of January 31 there has been an uptick of complaints from Nigerians that they have not yet received the new notes
  • Therefore, the CBN has informed banks that they risk a N1 million penalty if they fail to come pick up the new notes

PAY ATTENTION: How media literate are you? Click to take a quiz – bust fake news with Legit.ng!

The Central Bank of Nigeria will now penalise any commercial bank per day of N1 million for failing to collect the new Naira notes for distribution to the country's customers (CBN).

The CBN's deputy director for research for the Osun State branch, Adeleke Adelokun, made this statement at an event to promote the use of the new Naira notes at the Ayegbaju Market in Osogbo.

Read also

New naira note: CBN tells commercial banks to open on Saturdays, makes final decision on deadline extension

He said the CBN has printed enough new naira notes but most banks have refused to collect the money, the Cable reports.

new naira note CBN
CBN set January 31 as deadline to submit the old naira notes Credit: @cbn
Source: UGC

What CBN is saying

Adelokun said:

PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!

“When we learnt they refused to receive the new Naira notes, we sanctioned the bank with a fine of one million Naira per box every day, depending on the number of days.”
“We also directed banks to place fresh naira notes at ATMs around Nigeria so that Nigerians could use the new notes."

The branch controller's representative, Modojemu Ajuma, stated in her remarks that the redesign of the Naira notes was intended at reducing inflation.

According to Punch, he emphasized that the process would bring hoarded wealth into the financial system.

The CBN official stated:

"The currency redesign would help in the fight against corruption since it would limit the use of higher denominations for wrongdoing, and the transfer of such sums from the banking system could be easily tracked."

Read also

CBN speaks on why it stopped over-the-counter withdrawal of new naira notes

Experts predict naira exchange rate

In another report, experts have taken turns making predictions for the new year, and they feel it will be either good or more troubles

The federal government in its 2023 budget set the naira to the dollar exchange rate at N435.57/$ for 2023.

The experts believe that the performance of the naira will be determined by the type of policies from the federal government and the CBN.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.