Afrigather The brand new naira notes remained scarce throughout the banking sector on Tuesday, even because the January 31 deadline for the expiration of the previous ones attracts close to.
A go to to some banks in Lagos on Tuesday confirmed that lenders had been allotting principally previous notes to clients. Some banks stated a buyer might withdraw a most of N15,000 in new notes.
The Central Financial institution of Nigeria (CBN) ordered the printing of 500 million items of recent naira notes within the first contract, whose distribution began on December 15, 2022, Aisha Ahmad, deputy governor in control of monetary system stability on the CBN, advised the Home of Representatives on December 22, 2022.
“It’s disappointing for almost all of Nigerians and even unsettling for a lot of because the clock ticks in direction of the deadline for the previous naira notes, but the brand new notes are barely obtainable,” stated Taiwo Oyedele, head of tax and company advisory companies at PwC.
“Given the far-reaching implications of the previous notes ceasing to be a authorized tender and the aggressive opposition to the coverage from sure quarters, particularly by some politicians, one would have anticipated the CBN to be higher ready for a seamless rollout of the brand new notes, ” he stated.
He stated that within the meantime, it will be essential for the CBN to obviously talk the standing of the brand new coverage and any implementation challenges.
Learn additionally: ATMs fail to dispense new naira notes on short supply
“The place obligatory, the federal government ought to contemplate an extension of the deadline for the complete withdrawal of the previous notes from circulation,” Oyedele stated.
Some Nigerians who’ve been anticipating to get the naira notes have expressed disappointment over the shortage of the redesigned banknotes.
Ali Musa, a registered agro-products supplier in Dawanu Market in Kano – Nigeria’s largest grain market, advised BusinessDay on Tuesday that he was but to obtain fee with the brand new notes because it was launched in December.
“As you already know, our nature of enterprise right here is ‘money and carry’, which implies that we deal extra with bodily money, and for the reason that redesign of the N200, N500, and N1,000, I’m but to obtain any as fee,” he stated.
“Many merchants available in the market are in help of the cashless coverage of the Federal Authorities; the timeframe for its implementation is simply too brief and there’s a have to overview it if it should succeed,” he added.
Onoja Usman, a Lagos-based banker, stated the brand new naira in circulation is just not sufficient and this impacts his clients who request to be paid with the redesigned notes.
“What we do is that we combine the brand new notes with the previous notes and pay clients. For example, if we’re to pay N200,000, we give about N50,000 new notes,” he stated.
Shehu Abubakar, a Level of Sale (PoS) terminal operator at Jaba Panisau highway, Kano, stated that for the reason that introduction of the brand new notes in December, a lot of their clients have been displaying much less curiosity in accepting the previous naira notes.
In accordance with him, it has been tough for PoS operators to safe the brand new notes from deposit cash banks.
Muda Yusuf, director of the Centre for the Promotion of Non-public Enterprise, expressed doubt over the CBN’s readiness for the undertaking, saying readiness means there should be capability to print the amount wanted and the capability to distribute. “I believe the CBN grossly underestimated what this undertaking requires.”
He stated the timeline is formidable and must be reviewed. “This isn’t a undertaking that you simply rush. The timeline is unrealistic. If a few of these within the city areas haven’t seen the brand new naira, what in regards to the rural folks? My take is that they should overview it,” Yusuf stated.
Uche Uwaleke, professor of Capital Market on the Nasarawa State College Keffi, stated: “Since December 15, 2022, greater than two weeks after the CBN started distributing the brand new naira notes by way of the banks, you hardly discover them in circulation. Bulk of money withdrawals from the banks and PoS brokers remains to be completed in previous naira notes.”
In accordance with him, it seems the banks have been hoarding the brand new naira notes for distribution to their excessive internet price clients, most of whom are politicians.
He stated: “If the January 31, 2023 deadline should be stored, I anticipate the CBN to push out extra of the redesigned notes and in addition be certain that the banks are allotting them to their clients. This has turn out to be obligatory given the upward revision of the money withdrawal restrict from N100,000 to N500,000 per week for people.
“Else, on the present sluggish price and lopsided method at which the distribution of the brand new naira notes is being completed by the banks, I foresee a scenario the place the deadline is prolonged by not less than two weeks.”
“Having stated that, I don’t help the thought of extending it to June 30, 2023, as has been canvassed in some quarters. Doing so would defeat one of many goals of the foreign money redesign which is to discourage vote-buying in view of the truth that the final elections would have been over by then,” Uwaleke added.
