CBN May Phase Out Old 200, 500,1000 Naira Notes by December As Cash Scarcity Returns in Kano, Borno
- Cash shortages have resurfaced in two states ahead of the December deadline for the withdrawal of old Naira notes
- The Supreme Court earlier in the year ruled that old N200, N500, and N1000 banknotes will remain legal tender until December 2023
- Legit.ng reached out to the CBN for clarification and steps taken to mitigate another reoccurrence of cash scarcity
Dave Ibemere has over a decade of experience covering business and economy
Cash scarcity has reportedly returned in some parts of the country as the December 31, 2023, deadline for using the old N200, N500, and N1000 banknotes approaches.
Some parts of the country are reportedly experiencing cash scarcity as the December 31, 2023, deadline for using the old N200, N500, and N1000 banknotes approaches.
In March 2023, the Supreme Court ordered that the old naira notes would remain legal tender alongside the redesigned ones until December 31, 2023.
Source: Getty Images
This directive was given following nationwide cash shortages and protests leading to the February 2023 elections.
Naira shortage
DailyTrust reports that two months before the deadline, residents of Kano and Borno states are already facing cash shortages.
Several Point of Sales (POS) and Bureau de Change (BDC) operators captured in the report complained about cash shortages.
They also noted that it is difficult to get cash from banks' Automated Teller Machines (ATMs) around the states.
One of POS operators quoted said:
“As a PoS operator, I can’t give more than N20,000 to individuals because most banks only allow us to have N40,000 to N50,000 daily. I learnt that only owners of corporate accounts can get N150,000 to N200,000.
"If you go around town, you will find out that most of the PoS centres now have less cash compared to some weeks ago”
All this is happening despite statistics obtained from the Central Bank of Nigeria(CBN) showing that money supply (M3) in the country is at an all-time high of N67 trillion as at the end of September 2023.
CBN old naira notes
Legit.ng reached out to Isa Abdulmumin, CBN's acting director of the corporate communications department, but as of the time of filing this report, he has not responded to calls and text messages sent to his phone number.
The CBN has just two months left to make a decision on phasing out the N200, N500, and N1000 banknotes.
How CBN will go ahead with the previous management plans to phase out the old naira remains to be seen, as new naira notes are not well-circulated
BDC operators agree on new dollar-to-naira exchange rate
Legit.ng earlier reported that Bureau de Change dealers want to crash the dollar across the country.
ABCON initiated the move to support the CBN efforts to stabilise the naira at the foreign exchange market.
The wide disparity between the black market and the official exchange rate has been a genuine concern for the CBN.
Source: Legit.ng
