Currency swap: CBN extends deadline says N2.7trn kept permanently in people’s homes before redesign

By: Salako Tijani, Akeem Adeyemi, Jabiru Hassan, Kano.

Central Bank of Nigeria (CBN) has extended the deadline for the deposition of the old naira note of N200, N500, and N1000 naira to all commercial agents including banks as massive queue was experience during the weekend at all banks all over the country

Prior to the extension of CBN, the long queue was a mob of depositors as majority were seen struggling to ensure that their old naira note were able to be deposited to banks before the money fade out of market.

However, the CBN in a press release statement on Sunday said President Muhammadu Buhari has approved the extension of the policy till Febryary 10, 2023.

The statement came after the CBN governor, Godwin Emefielemet with President Buhari in Daura on Sunday.

The statements read in part : “Available data at the Central Bank of Nigeria has shown that in 2015, Currency in­ Circulation was only N1.4 trillion. As at October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking Industry and N2.7 trillion held permanently in people’s homes.

“Ordinarily, when CBN releases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN thereby keeping the volume of currency in circulation under the firm control of the CBN.

“So far and since the commencement of this program, we have collected about N1.9 trillion; leaving us with about N900 billion (N500b + N1.9trillion).”

He said to achieve effective distribution of the new currency, the CBN has took a number of steps.

“We held several meetings with our Deposit Money Banks (DMBs) arid provided them with Guidance· Notes on processes they must adopt in the collection of old notes and distribution of the New Notes to all Nigerians. These includes specific directives to DMBs to load new notes into their ATMs nationwide to ensure an equitable/transparent mechanism for the distribution of the new notes to all Nigerians,” he said.

“We commenced a nationwide sensitization through the Print and electronic media to create an awareness on the redesigned notes to Nigerians including collaboration with the National Orientation agency to reach all Nigerians across multiple channels.

“We deployed 30,000 Super Agents nationwide to assist in our Cash Swap initiative in the hinterlands, rural areas, and regions underserved by banks in the Country to ensure that the weak and vulnerable ones amongst us can swap/ exchange their old notes.

“We deployed all our staff, particularly the Assistant Directors, Deputy Directors and Directors· in Abuja to proceed to all CBN branches Nationwide to join the mass mobilization campaign and monitoring programs, working with the Deposit Money Banks , agents and our Branch controllers across the 36 states of the Federation. This is meant to ensure compliance with all our guidelines already issued for smooth implementation of the program. Although we have received some reports of breaches by some bank branches, we have agreed with Executive Chairmen of the EFCC and ICPC to assist us, by sending their staff to all CBN and DMB branches nationwide to join in monitoring the implementation of these guidelines. The aim is to ensure compliance with the laid down guidelines.

“We are happy that so far, the exercise has achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system. Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes; leveraging the Agent Naira Swap initiative as well as the CBN Senior staff nationwide sensitization team exercise.

“Aside from those holding illicit/ stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped monies at the CBN for exchange.”

Emefiele thanked President Muhammadu Buhari, whom he described as an “incorruptible leader”, for approving the naira redesign programme.

“I’ve just ended a meeting with Mr President. The purpose of the meeting is to provide Mr President with updates about the implementation status of the CBN currency redesign program currently going on across the Federation,” he said.

“First, I’d like to continue to thank Mr President for giving the CBN the approval to embark on this ambitious program because, like I had said in the past, the Central Bank of Nigeria hasn’t had the opportunity to embark on such currency redesign program in last 19 years and indeed, let me emphasize that only an incorruptible leader of the President’s stature can give such approval to the CBN.

“From the on-set (outset) of this currency redesign program, we made it clear that for 19 years, the CBN hasn’t been able to conduct this important aspect of its mandate, whereas this should normally have been be done within a 5-8 years window.

“Our aim is mainly to make our Monetary Policy Decisions more efficacious and like you can see; we’ve started to see inflation trending downwards and exchange rates relatively stable. Secondly, we aim to support the efforts of our Security agencies in combating Banditry and Ransom taking in Nigeria through this program and we can see that the Military are making good progress in this important task in Nigeria.”

Prior to the press briefing, Standard Times Newspaper has approached different point of sales operator (POS) who lamented that, the central bank of Nigeria, with the January 31th deadline will only cause a mob as majority is yet to have access to the new note. 

Another operator explained that some POS operators are now making brisk business from the innocent Nigerians that to withdraw N10, 000 of new naira note is 300 Naira and N10, 000 of old naira note is 200. 

Some making a reference to a viral video of new N500 note lavishing in bails at a party, saying that the act is unlawful as majority are struggling to return the old note and have access to the new note.

The CBN by the statement said it has resolved to February 10 as it is ten days extension for the individuals to deposit their old naira note, “10 days extension of the deadline from January 31 to February 10, 2023, to allow for collection of more old note legitimately held by Nigerians and achieve more success in cash swap, our rural communities after which all old note outside CBN losses their legal tender status

“Also 7 days grace period beginning on February 10 to February 17, 2023 in compliance with CBN Act allowing Nigerians to deposit their old note at the CBN after the February deadline when the old currency would have lost it legal tender status.”

Those who still have the old notes after February 10 will enjoy a seven-day “grace period” to deposit them directly with the CBN.

After February 17, the old notes will cease to be legal tender, the governor said.

However, the Director of the Centre for the Promotion of Private Enterprises, CPPE, Dr Muda Yusuf has berated the CBN for adding just ten days to the earlier deadline insisting that ten days is inadequate for the program

Yusuf, in a statement made available to Standard Times said the Centre believes the 10 days is grossly inadequate to make up for the glaring shortcomings of the apex bank in this process. 

The Statement read, “Just got news that the deadline for the currency swap has been extended by 10days.  The CPPE believes that 10 days is grossly inadequate to make up for the glaring shortcomings of the apex bank in this process” 

On its part, the Presidential Campaign Council, PCC, of the All Progressives Congress, APC, has commended Godwin Emefiele, the Governor of the Central Bank of Nigeria, CBN, for extending the deadline for changing old naira notes to new ones.

The APC PCC Director, Media and Publicity, Bayo Onanuga in a statement issued on Sunday said the extension would enable Nigerians, especially those in rural and remote areas, to have more time to change their old notes and avert the panic that would have followed.

He said: “We want to commend the Central Bank of Nigeria and Governor Godwin Emefiele for listening to the voice of well-meaning Nigerians on the exigency of extending the deadline for change of old N200, N500 and N1000 notes to the new ones.

“We welcome the 10-day extension of the deadline and the additional seven days of grace.”

The campaign also commended President Muhammadu Buharifor approving the extension and for his leadership and statesmanship.

In the meantime, business activities are now ongoing in the city of Kano without rejection of old notes since the recent extension of deadline announced by the central bank of Nigeria CBN shortly after the apex bank governor visited president Buhari at Daura this morning.

Standard Times  correspondent in Kano reported that some of the shops earlier closed due to the deadline of 31st January were seen opened while the food stuffs sellers  remained at their stalls busy measuring the commodities to customers who are mostly in the communities.

Furthermore, almost all the banks are working in full capacity as monitored by our correspondent, where some residents lamented that the extension of the old naira deposition would enable those at far rural communities to makes their deposits.

” We are happy that the apex bank has extended the naira deposits to 10th February which would enable the people to swaps their old currency for new ones, but we solicits for at least 3 months to complete the deposits” said a trader Auwal Umar.