Naira Scarcity: CBN to monitor compliance nationwide as it orders old currency circulation

The Central Bank of Nigeria (CBN) has commenced the distribution of old naira notes to Deposit Money Banks (DMBs) as part of efforts to ease the biting currency scarcity affecting millions of bank customers nationwide,” according to a news report.

Following a meeting between CBN Governor Godwin Emefiele and bank CEOs, the central bank directed DMBs to collect old N1,000, N500 and N200 notes from its offices across the country for onward disbursement to customers.

Several bank sources, including CEOs and top executives, confirmed receiving old notes from the apex bank. “I can confirm to you that we received old notes from the CBN today, we also received a memo from the central bank to this effect,” said the CEO of a commercial bank.

A general manager at a tier-2 bank also disclosed that their bank received some old notes from the CBN on Thursday. However, the officials noted that it may take around two weeks for the situation to normalize, adding that bank queues might not disappear until later next week.

Despite the announcement that the CBN will pump more cash into the system, some bank officials and the Bank Workers Union believe the situation might not normalize immediately due to the minimal release of old currency to banks, panic withdrawals by customers, and the restriction of daily withdrawal limits by the CBN.

According to The PUNCH, only a few banks began disbursements on Thursday, and several bank branches received the funds from the CBN very late and could not begin the disbursement. However, the CBN plans to dispatch a team of officials to monitor compliance on the part of banks.