CBN Clarifies Fresh Directive To Banks, Says There Is Enough New Naira Notes To Meet Demand

The Central Bank of Nigeria (CBN) has clarified that it did not ban Deposit Money Banks (DMBs) from paying customers the new notes over the counter.

Naija News reports that the CBN in a memo had directed the banks to load their Automated Teller Machines (ATMs) with only new notes to ensure that the currency circulates across the nation ahead of the January 31 deadline.

Clarifying reports that it stopped over the counter withdrawal, the CBN’s Director of Corporate Communication, Osita Nwanisobi, disclosed that the directive to the banks to dispense new notes via ATMs was to complement over-the-counter transactions and increase the circulation of the redesigned notes.

He stated that DMBs have enough new notes to circulate across the nation ahead of the January 31 deadline when old notes will cease to be a legal tender.

He told ThisDay that adequate plans have been made to heighten the circulation of the new notes, adding that speculations that the banks do not have enough new notes for circulation were false.

Whole urging the general public to continue to use the old notes as they remain legal tender, Nwasinobi explained that the old notes are more prominent in the banking halls because they are still in circulation and remain legal tender.

Nwasinobi explained that the directive to bank to load ATMs with the new notes didn’t categorically ban over-the-counter transactions but was issued as a persuasion to dispense via ATMs to increase circulation.

He said: “There is what we call moral suasion; we had a meeting with the banks and we all agreed that we can begin to put the new notes in the ATMs so that people would see and boost circulation.

“Yes, you can say it is a directive. We keep reviewing and my worry is by next week when new notes are being paid across the counter people would say they are flaunting.

“We had a meeting and we had moral suasion because people are complaining they are not seeing new notes. So, that also doesn’t mean that banks cannot pay over the counter.

“The CBN is concerned about claims by Nigerians that they have not come in contact with new notes and we have directed the banks to ensure that they load their ATMs with new notes. This would ensure quick and wider circulation across Nigeria. I never said they shouldn’t pay across the counter.”

On complaints that the deposit money banks do not have access to new notes, he said: “That position is not entirely correct. We have enough supply in line with the intent for the period. The old notes remain a legal tender until the January 31st so it would still be in circulation.”

He stated that January 31 remains sacrosanct, adding that there are no indications that the date would be extended.