Afrigather The Governor of the Central Financial institution of Nigeria (CBN), Godwin Emefiele, has introduced that banks will frequently settle for outdated naira notes even when the prolonged deadline for swapping with the newly redesigned naira notes expires.
The CBN Chief disclosed this when he appeared at an interactive session with the Home of Representatives ad-hoc committee on the foreign money redesign and naira swap coverage in Abuja, on Tuesday, January 31, 2023.
Emefiele famous that this transfer would save Nigerians from dropping their outdated notes after the February 10 prolonged deadline. He defined that whereas the outdated notes stop to be authorized tender on the expiration of the deadline, banks will nonetheless obtain outdated notes when introduced for deposit by Nigerians. The brand new improvement has been described because the CBN yielding to the request of the Home of Representatives for a gradual phase-out of the outdated naira notes.
Why banks will maintain accepting outdated notes
Talking through the session, Emefiele hinted that the act of the Central Bank of Nigeria mandates the apex financial institution to repeatedly settle for outdated notes after they expire. Let’s check out the act:
Part 20 (3) of the CBN act reads “However sub-sections (1) and (2) of this part, the financial institution shall have energy, if directed to take action by the president and after giving affordable discover on that behalf, to name in any of its notes or cash on fee of the face worth thereof and any be aware or coin with respect to which a discover has been given underneath this sub-section, shall, on the expiration of the discover, stop to be authorized tender, however, topic to part 22 of this act, shall be redeemed by the financial institution upon demand.’’
Referencing the CBN act, Emefiele recognized with the demand of the home of Representatives for a gradual phasing of the outdated naira notes. He nonetheless didn’t state when banks will cease accumulating the outdated notes.
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