Why Nigerians may experience naira scarcity after December —Gabriel Okeowo
The Country Director of BudgiT Foundation Nigeria, Gabriel Okeowo, has said that Nigerians may still experience another round of naira scarcity by the time the Central Bank of Nigeria (CBN) withdraws the old N1,000, N500, and N200 notes on December 31.
Disclosing this during an interview, Okeowo said this is going to happen because the apex bank has continued to push out more of the old naira notes when it is supposed to be releasing more of the redesigned new notes.
The country director said he was yet to understand the rationale behind allowing more old notes in circulation when the deadline for its use was closing in.
According to him, if the CBN continues to release old notes rather than new notes, it will be difficult to mop up the old notes before Dec. 31.
Banks’ IT infrastructure concern
Aside from the need for the availability of the redesigned notes, Okeowo said there was an urgent need for an overhaul of banks’ IT infrastructure for effective implementation of the cashless policy.
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The back story
The Supreme Court had on March 3, ruled that all old denominations including N500 and N1,000 notes remained valid till Dec. 31. The ruling followed hardship experienced by Nigerians as a result of the Naira redesign and cashless policy of the CBN, which took effect from Jan. 31.
While the cash scarcity eased a few weeks after the CBN complied with the ruling and directed banks to push out the old notes, the new notes have since become scarce. Bank ATMs are being loaded only with old notes.
With a few months to the new deadline fixed by the courts, the apex bank was expected to have started gradually mopping up the old notes while releasing the new notes, but that is not happening yet.
Managing Consultant
1yMr Okeowo has made a good observation.What he said is truth .He was able to hit the nail on its head.I have not received any new Naira note from people in recent times.I wonder whether CBN is withdrawing the new notes from circulation.What banks' ATMs located along Ire-Akari Estate Road Isolo dispense are old Naira notes.I can agree with him that if CBN does not do something urgently Nigerians will experience cash crunch again ie as from December 31st 2023 which is the deadline given by Supreme for old Naira notes to cease to be legal tender.The question is, to what extent is CBN getting ready for total withdrawal of old notes in December and printing enough new Nairs notes? They have all the time at their disposal to do something now.Again, I don't think Nigerian banks' have upgraded their technological infrastructure to contain the traffic associated with full implementation of cashless policy.I think they should be allowed some flexibility to enable them do that.They are expected to make some investment in this regard.