The PUNCH has confirmed with authority that the Central Bank of Nigeria has finalized arrangements to release all N1,000, N500, and N200 notes under its possession to Deposit Money Banks....CONTINUE READING
This decision is anticipated to put an end to months of difficulties and suffering endured by Nigerians as a result of the CBN’s contentious currency redesign strategy, which has led to a significant scarcity of both old and new naira notes throughout the nation.
CBN’s latest decision comes weeks after the Supreme Court ordered the old N1,000, N500, and N200 bills to be legal tender until December 31, 2023.
On Wednesday night, senior officials from the CBN and commercial banks confirmed to The PUNCH that CBN Governor Godwin Emefiele had ordered DMBs to begin disbursing old N1,000, N500, and N200 notes for members of the public effective Thursday (today).
According to him, CBN will also start issuing old banknotes to commercial banks on Thursday.
PUNCH learned that Emefiele met with the CEOs of the DMB on Wednesday night, where he told them that the central bank would begin issuing all old notes held to commercial banks. effective from Thursday (today).
Sources at the meeting said CBN will also cancel all controversial cash withdrawal limits it has introduced in recent months.
In addition, it is known that CBN will first issue a net of old banknotes to DMBS, and then those deposited by commercial banks will also be issued.
In addition, CBN said at the meeting that bank customers will no longer be required to generate a code before depositing their old banknotes.
One of the bank CEOs at the meeting, who spoke on condition of anonymity, said: “The governor of CBN had a virtual meeting with the bank CEOs tonight.” It was a short meeting that lasted about 15 minutes.
The governor said all old N1,000, N500, and N200 notes will be issued to commercial banks on Thursday. CBN will start with clean old bills, then those deposited by DMB will be returned. The plan is to flood the economy with cash and ameliorate the challenges experienced by Nigerians.
Bank Manager
Bank Manager added, “In addition, CBN will be canceling the cash withdrawal limits they recently introduced. This means that individuals can now withdraw up to N500,000 at the counter, while corporate entities can earn up to N5 million.
CBN is expected to issue a circular on this either tonight or tomorrow morning (today). But really, things will be back to normal when it comes to the cashless policy.
Other findings from The Punch confirmed that CBN will begin issuing old banknotes on Thursday. It is also understood that banks will start paying their old banknotes to their customers immediately to ensure the circulation of money throughout the country.
According to CBN’s reliable sources, banks have also been ordered to report to old offices to recover old naira notes they have deposited in the apex bank.
They note that before the weekend the whole country will be flooded with naira.
Meanwhile, a source close to CBN said the apex bank had taken the decision to avoid supporters and leaders of the Nigerian Labor Congress holding a planned protest at its offices. of CBN nationwide.
NLC protests
Prior to that, PUCH understood that the NLC would raid CBN headquarters and state offices on Wednesday to protest the ongoing naira crisis and fuel shortages in water.
NLC President Joe Ajaero, who revealed this at a press conference on Wednesday, lamented that people’s difficulties in facing the naira crisis are getting worse.
On Monday, the union penultimately issued a seven-day ultimatum to the federal government to address naira and fuel shortages that have exacerbated the difficulties facing Nigerians.
Although the CBN later said it had complied with the Supreme Court’s ruling ordering the old N200, N500 and N1000 banknotes to remain in circulation until December 31, the banks continued. continues to allocate cash issued to customers, showing that they do not receive cash from apex bank.
The three states of Kaduna, Kogi and Zamfara sued the federal government over its naira overhaul policy threatening to file contempt charges Federal Attorney General Abubakar Malami, SAN and Governor of CBN, Emefiele for having not fully comply with the Supreme Court’s Decisions. Speaking at a press conference in Abuja on Wednesday, Ajaero said the plan to inspect CBN’s offices became urgent after the apex bank failed to meet a week-long ultimatum issued to give money to Nigerians.
Ajaero explains that the union made the decision when it realized that the situation seemed to be getting worse despite the Supreme Court’s order to circulate the old N500 and N1000 banknotes along with the old N500 and N1000 banknotes. new money through December 31.
He directed all branches of the NLC, unions and their state boards to begin raising Friday for mass action nationwide, said that the federal government and the CBN have shown no commitment to remedy the situation
Giving an update on the ultimatum at a briefing held at Labour House, Ajaero said workers no longer have access to money to pay for their workplace fare. correspondence or buy food for their families.
He said: “Last week, at the conclusion of the CWC (Central Work Committee) meeting, we issued a weeklong ultimatum to the federal government for immediate resolution, along with other problems, the lack of liquidity caused by politics. Since this morning when the CWC met to assess the situation, we have not seen much improvement.
“The situation remains the same. People still buy our currency with our currency. People no longer have access to money and the government seems to be very adamant about it. No action has been taken to alleviate the suffering of the Nigerian people.
“Therefore, the CWC in session decided to initiate the one-week notice update process. From Friday, there will be mobilization of all state councils through a meeting of the NEC. All unions received orders to mobilize all their agencies and branches.
“By next Wednesday, all the offices of the Central Bank of Nigeria across the country will be selected. All central banks at CBN headquarters will be closed until further notice. Workers were asked to stay home and participate in the exercise.
“We urge the people of Nigeria to understand the circumstances in which we operate. People will tell you about the political situation. The political situation is self-inflicted and the economic situation is worse than the political situation because people cannot eat.
Union leaders described the proposed protest as ‘outrageous’, saying workers had been cornered.
He added, “Workers can no longer come to the office and nothing happens. So we were pushed into a corner after giving a week (ultimatum) and we thought they could fix the irreparable situation.
“We have decided to embrace our destiny. So, comrades, the mobilization starts immediately and when we talk about action from Wednesday, that’s the whole thing; until further notice. ”
Union leaders explained that continued fuel shortages and cash shortages are important issues for the NLC as they affect all Nigerians.
National Air Transport Workers Union Secretary-General Ocheme Abah has revealed that unions will follow the NLC’s stand-by directive.
In response to a question from The PUNCH, he said, “Yes, of course we will follow the NLC guidelines. Yes, all unions at all airports.
Meanwhile, acting director of corporate communications at CBN, Mr. Isa Abdulmumin, said he could not immediately comment on whether CBN will issue old banknotes to commercial banks.
He said the apex bank will announce its position on the matter on Thursday.
