EXTENDED DEADLINE FOR NAIRA DEPOSIT: EXTENDED HARDSHIP

The citizens of Nigeria have imbibed the unfortunate habit of waking up early to go queue for the new naira notes. I must state that these queues are not queues to receive alms or bread from the government, these queues are of people making efforts to withdraw their hard earned monies which they need to run their daily affairs and businesses.
The central bank of Nigeria (CBN) over the weekend relaxed on the initial stipulated 31st January 2023 for Nigerians to deposit old currencies (N200, N500 and N1000) at the Banks to a new deadline of 10th February 2023 where the old currencies in view would cease to become legal tenders however, banks would still accept the old Naira notes beyond that date.

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We expected the society to see some calm at the Banks and Automated Teller Machines (ATMs) where the good people of Nigeria can easily make their withdrawals and go about their normal businesses. However it is sad to note that;

1. Businesses are at risk of collapse for lack of access to New Naira Notes as some sellers have refused to honor old Naira notes for fear of loss in value or inability to deposit the old notes. Many marketers do spend most part of their days on queues in an attempt to get the new Naira notes. Sometimes, these people engage in verbal or/and physical aggression and at few times, a loss of property.

1. Long queues at Automated Teller Machines (ATMs) have worsened as there have been persistent scarcity of the new naira notes despite the Central Bank of Nigeria putting blames on commercial banks as cause of the new Naira notes' scarcity. Some of these scarce new Naira notes have been seen at occasions being lavished at occasions in bundles (we should then wonder where these people got those bundles of new Naira notes when the CBN has pegged a daily maximum withdrawal for individuals to be N20,000 ($27) per day.

2. Sale of Naira to buy Naira: this is sad to note that in the face of scarcity, Point of Sales (POS) operators and some bank staff have engaged in sales of the new Naira notes as also published in the Nigerian Dailies. One is thus made to pay extra for what should be rightly theirs despite having to pay for charges on the POS.

3. Unstable Online cash transactions: I made a transfer of funds on Friday the 27th of January 2023 to someone using another bank type. I was compelled on two separate occasions having to listen to automated voice recordings for about a total of 70minutes before I had the fund reversed yesterday the 31st of January 2023. If the CBN is pushing towards cashless transactions, networks should definitely not be a hindrance to the smooth transfer of funds. I heard from a good number of people how the network delayed or denied smooth transaction. Would we say then that we are ready for the cashless transaction policies?

4. Persistent circulation of the old Naira notes: the extension of the deadline was announced less than 72hours prior to initial deadline and one would expect with all the exhibited panick and efforts to deposit the old naira notes to experience a scarcity of these old naira notes. This is however not the case as every new naira notes is now valued like gold, hoarded and citizens are reluctant to accept the old naira notes despite the deadline extension.

With the above submissions, I am between two opinions. One is to have allowed the 31st January deadline to stand and thus, put an end to the acute circulation of the old Naira notes. Second is that if there was going to be an extension of deposit of the old naira notes, it should be extended for six (6) months so as to relieve people the need for panick deposits and withdrawals.

I hope one day we get our policies right in our society and curb avoidable pain and hardship on the citizens.

Thank you for reading through, I wish us a month full of love and bulls 🤗