Money disaster worsens as CBN extends deadline

After insisting every week in the past that the January 31 deadline was irreversible, Central Financial institution Governor Godwin Emefiele, introduced the extension of the foreign money change deadline yesterday. Nigerians now have till Friday, February 10, to submit all outdated notes to their respective banks. Within the press launch sharing the deadline extension, the CBN said it has solely collected ₦1.9 trillion ($4.1 billion) in outdated notes. The financial institution goals to gather not less than ₦900 billion ($1.9 billion) to realize optimum steadiness. The CBN governor appealed to Nigerians to deposit their legally acquired outdated notes on the banks.

Financial institution visitors declines after the deadline extension

Nigerians appear to have taken the extension of the deadline as a sign to decelerate on their outdated notes submission. Whereas banks labored further hours and thru the weekend to assist the foreign money change course of, all indicators level to the truth that individuals are keen to attend out the brand new deadline. In line with stories from financial institution employees, the visitors at banks in the present day is drastically much less in comparison with yesterday—a Sunday—when the financial institution was full of individuals attempting to deposit their cash or swap for the brand new foreign money.

An worker at a First Financial institution department on the mainland of Lagos instructed TechCabal, “At the moment is so uninteresting. Yesterday was loopy for a Sunday, and had the deadline not been prolonged, in the present day would have been worse.” A Stanbic IBTC worker instructed TechCabal, “As soon as the extension was introduced, folks left the banking corridor to renew their enterprise operations utilizing the outdated notes.”

Money disaster hits

The about-turn is no surprise, as there’s a rising shortage of money—each new and outdated notes. At many ATM queues throughout Lagos, there are lengthy queues, even throughout moments when the machines don’t have money. There are stories on Twitter that some POS brokers are charging exorbitant charges for the withdrawal of recent notes. Some are reportedly charging as a lot as 10% of the quantity withdrawn.

This morning Abuja POS operators inside Wuye axis are charging 10% for the brand new notes. So, N15,000 is N1,500; then N10,000 is N1,000. I’ve tried in like 5 completely different spots. It’s identical story. They stated they needed to bribe financial institution cashiers to get the brand new notes too. What’s your expertise?

— Eniola Akinkuotu (@ENIBOY) January 30, 2023

All 5 POS brokers on the mainland of Lagos interviewed by TechCabal sat idly of their stalls, turning away prospects who got here to make withdrawals as they themselves had no money.

“I understand how many shoppers I’ve misplaced this morning as a result of I can not entry the cash in my financial institution. The banks are refusing to provide us money, new or outdated, and the ATMs which have the brand new notes are overcrowded. If I see anybody that can provide me both of the notes, I’ll undoubtedly purchase them and recuperate the price of them by growing the quantity I cost my prospects who need to withdraw. I do know they gained’t thoughts paying, ” stated one POS agent.

They haven’t been in a position to withdraw cash over-the-counter as banks have stopped issuing cash that approach. ATMs, the one technique to get money, are overcrowded and unable to satisfy the demand.

Talking concerning the crowded ATMs, the First Financial institution worker instructed TechCabal, “Our ATM is crowded even supposing it isn’t allotting money.” Persons are so determined that they’re giving their ATM playing cards and pins to safety guards at banks to allow them to assist them withdraw as quickly because the ATM begins allotting. It’s each dangerous and unfair.”

Each financial institution workers verify that the brand new notes are scarce. “The ATMs are the one designated channel for withdrawals, however banks are actually not getting lots of new notes allotted to them from the CBN,” stated the Stanbic IBTC financial institution worker. Emphasising the identical level, the First Financial institution worker asserted that “Since this complete factor began, they haven’t given us greater than 20 million.”

The financial institution worker from Stanbic IBTC financial institution and one other banker from United Financial institution of Africa (UBA), suppose the deadline extension was pointless. “Nigerians have been compliant and coming in to deposit their outdated notes, even market ladies. I feel the CBN governor is simply responding to the stress from the highest 1% and political businesses as a result of the widespread man has been compliant,” the feminine UBA financial institution worker instructed TechCabal.