Naira Crunch: Banks In Shock As Rejection Of Outdated N500, N1000 Spreads

Naira Crunch: Banks In Shock As Rejection Of Outdated N500, N1000 Spreads
Old Naira Notes
Outdated Naira Notes


Naira Crunch: Banks In Shock As Rejection Of Outdated N500, N1000 Spreads

The passion that greeted the Supreme Court docket judgement that the previous N500 and N1,000 notes ought to be in use until December thirty first 2023, has dissipated as widespread rejection of the previous notes by financial institution clients, transporters and different companies took over the monetary and financial area.

The rejection of the previous notes is pushed by continued silence of the Federal Authorities and the Central Financial institution of Nigeria, CBN, on the court docket judgement.

Banks Implement Money Withdrawal Limits

In the meantime, banks have began effecting money withdrawal restrict of N100,000 per week for particular person clients.

Nonetheless, the cash is paid in previous banknotes which most clients refused to gather.

In accordance with a high financial institution official, clients are insisting that there have to be an official assertion approving the previous N500 and N1,000 notes as authorized tenders earlier than they’ll settle for the notes.

Talking on situation of anonymity, the banker who heads one of many branches of a Tier 1 financial institution stated: “All people (clients) that got here to my department right now rejected it (previous N500, N1,000 notes). They stated individuals are not amassing it, and I attempted it. I gave anyone a N1,000 be aware to go to a well-liked restaurant in Lagos to purchase me rice, however the restaurant rejected it. I gave one other particular person N500 to make use of it to board a industrial bus to see if transporters will settle for it. The particular person got here again and stated the industrial buses refused to gather it too.

“Within the case of the previous N200 banknote, the President spoke and all people adhered to it. So why are they not talking now? They (clients) stated President Mohammadu Buhari or CBN Governor ought to say okay to the Supreme Court docket ruling.

“Sadly that’s what they’re even bringing for us right here. We held a gathering they usually stated extra notes are even coming, the N1,000 and N500.”

The banker additionally confirmed the graduation of the money withdrawal restrict. He stated: “Sure, they even stated we ought to be doing N20,000 per buyer per day. That’s what the round our banks despatched to us right now stated.

When contacted on the above growth, Performing Director, Company Communication Division, CBN, Dr. AbdulMumin Issa, stated, “There isn’t any official assertion on the previous N500 and N1,000 notes.”

The event in Lagos can also be observed in Ibadan, Oyo State capital yesterday, the place financial institution clients stated they might not take the previous banknotes from their banks for the reason that banks had earlier on Monday claimed that they had been ready for CBN or the President earlier than they’ll dispense the previous banknotes.

They questioned why the banks are actually giving it out with out the pronouncements from the 2 authorities.

A employees of one of many tier-one banks informed our correspondent that her financial institution began meting out the previous banknotes as a result of on Monday the CBN despatched again the previous Naira banknotes they’d earlier deposited on the apex financial institution final week.

She hinted that she additionally made a private withdrawal of N30,000, for use for private spendings, however regretted that she couldn’t use it for transactions as merchants and industrial motorcyclists rejected it.

“I additionally made a withdrawal of N30,000 previous notes however sadly I grew to become stranded after I needed to pay an okada rider and he rejected it. Since that was the one cash I had on me, I used to be additionally affected with the shortage of latest naira notes, I needed to name somebody that introduced N500 for me to settle the bike man.”

She stated although there isn’t a official assertion from the CBN on the acceptability of the previous naira notes, following the Supreme Court docket judgement, there was hope that the state of affairs would get higher in few days to come back.

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