Fun

Nigerian Banks Still Distributing Old Naira Banknotes as Demonetization Date Approaches

News Feed - 2023-01-24 08:01:56

Nigerian Banks Still Distributing Old Naira Banknotes as Demonetization Date Approaches


With just a few days left before old Nigerian naira banknotes are removed from circulation, some banks have accused the Central Bank of Nigeria of failing to distribute enough new banknotes. Despite growing pressure for it to extend the period for returning the old notes, the central bank insists the Jan. 31 deadline still stands. Less Than 40% of ATMs Are Dispensing New Banknotes


As the Central Bank of Nigeria (CBN)’s Jan. 31 deadline for returning the old naira banknotes approaches, banks in several Nigerian states are still distributing the soon-to-be demonetized banknotes, a report has said. In addition, fewer automated teller machines (ATMs) — less than 40% according to an investigation by the Guardian — were reportedly dispensing new banknotes.


According to the Guardian report, some bank insiders are adamant that the shortages are caused by the CBN, which has not distributed enough new banknotes. One unnamed banker from Lagos claimed that their branch got “just N1.5m new notes” in the previous week and had no new stock of the redesigned naira at the time of writing.


The banker, however, suggested that the CBN planned to do a massive rollout of the new banknotes in the last week of January. The banker said: The deadline is fast approaching, but we are not getting the expected quantity. We are suspecting that they will roll it out massively next week because there are no indications that the deadline will be extended.


Another banker from Nigeria’s Ogun state said while the CBN has refused to extend the current deadline the increased anxiety suggests that “a massive rollout of the money” should have been done by now.


CBN Refuses to Bow to Pressure


The fears that many Nigerians will lose out when the old naira banknotes are phased out has prompted some politicians to call for an extension of the deadline. However, the CBN has so far refused to bow to pressure and has insisted that the deadline still stands.


In the past, the central bank has dismissed claims that the decision to demonetize the old banknotes is aimed at punishing certain groups. Instead, the CBN insists that the exercise is designed to help it reduce expenditure on cash management as well as to weed out counterfeit banknotes.


Meanwhile, some Nigerian commentators have suggested that the CBN may be deliberately injecting inadequate banknotes as part of an attempt to force residents to switch to digital alternatives including its central bank digital currency (CBDC). Such speculation has in turn prompted the Nigeria Governors’ Forum (NGF) to issue a statement cautioning the CBN.


In the statement, the governors reportedly said that while they are not against the currency redesign policy, the central bank should “consider the peculiarities of states especially as they pertained to financial inclusion and under-served locations.”


Register your email here to get a weekly update on African news sent to your inbox:

Tags in this story CBDC, Central Bank of Nigeria (CBN), demonetize, demonitize, financial inclusion, Nigeria Governors’ Forum (NGF)


What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Report: Somalia to Fight Inflation and Counterfeiters With New Banknotes AFRICA | 3 days ago East African Community to Decide on Regional Central Bank Launch in 2023 AFRICA | 5 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleWe Must Expedite the Move From Centralized Services to Viable DeFi Alternatives Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher

News Feed

ZkSync’s Gemholic project suspected $3.5M rug pull
Amaka NwaokochaJun 08, 2024ZkSync’s Gemholic project suspected $3.5M rug pullCommunity members are currently trying to trace the Gemholic contract creator’s address, which is supposedly funded by Binance.8763 Total v
Bitcoin Hashrate Climbs 128% Over 83 Days, Network’s Mystery Miners Disappear
Bitcoin Hashrate Climbs 128% Over 83 Days, Network"s Mystery Miners Disappear Bitcoin’s hashrate has been climbing higher during the last two weeks, hitting 174 exahash per
Derek Andersen6 hours agoChinese digital yuan CBDC used for first time to settle cross-border oil dealCBDC and de-dollarization saw major strides last week with the 1-million-barrel deal on the Shanghai Petroleum and Nat
Bitcoin Cash Vietnam-Based Fiat-to-Crypto Trading Support Added to Bvnex Exchange
Bitcoin Cash Vietnam-Based Fiat-to-Crypto Trading Support Added to Bvnex ExchangeThis week the trading platform Bvnex Exchange announced the support of bitcoin cash on the Vietnam-b
Billionaire Ray Dalio Says Bitcoin Isn’t an Effective Money, Store of Value, or Medium of Exchange
Billionaire Ray Dalio Says Bitcoin Isn"t an Effective Money, Store of Value, or Medium of Exchange Billionaire Ray Dalio, the founder of the world’s largest hedge fund, Bridg
US Treasury Secretary Janet Yellen Says ‘the Misuse of Cryptocurrencies Is a Growing Problem’
US Treasury Secretary Janet Yellen Says "the Misuse of Cryptocurrencies Is a Growing Problem" Janet Yellen, the new U.S. Treasury Secretary, has warned about &ld
XRP Price Explosion Above $3 Is A Matter Of When, Not If: Analyst Reveals Timeline
Este artículo también está disponible en español. A crypto analyst has made a bold prediction about the XRP price, highlighting that an explosive rise above $3 is not a m
Lido Deploys Additional Curve Pool to Improve Liquidity Around Bonded ETH Peg
Lido Deploys Additional Curve Pool to Improve Liquidity Around Bonded ETH Peg On Friday, the value locked in decentralized finance (defi) protocols dropped to a low of $110.35 bill
Bitcoin Cash-Fueled Blogging Website Read.cash Raises Over $100K for Collective Initiative
Bitcoin Cash-Fueled Blogging Website Read.cash Raises Over $100K for Collective InitiativeA few months ago news.Bitcoin.com reported on the web portal read.cash, a blogging website
Billionaire Hedge Fund Founder Ray Dalio Steps Down as Co-CIO of Bridgewater Associates
Billionaire Hedge Fund Founder Ray Dalio Steps Down as Co-CIO of Bridgewater Associates Billionaire hedge fund founder Ray Dalio has stepped down as chief executive of Bridgewater
Prashant Jha10 hours agoMagnate Finance on Base rug-pulls users of $6.5M, as predicted by on-chain sleuthMagnate Finance first deleted its Telegram channel and X account followed by taking down the website before pulling
Car Manufacturer Maruti Suzuki Launches Metaverse Showroom Experience in India
Car Manufacturer Maruti Suzuki Launches Metaverse Showroom Experience in India Maruti Suzuki, one of the biggest car manufacturers in India, has announced that it is taking its cus