How CBN Gave Directive On N1000, N500 Notes, Denied Hours Later

Reports have revealed how the Central Bank of Nigeria (CBN) allegedly issued contradictory directives on Friday (today) over the acceptability of old N1000, and N500 notes at its offices.

Earlier on Thursday, February 16, President Muhammadu Buhari, in a nationwide broadcast, asked Nigerians to take old N500 and N1000 notes to the CBN as the denominations are no longer legal tender in the country. The Nigerian leader declared that only the old N200 note would be accepted until April 10.

Shortly after the President’s declaration, many Nigerians thronged the offices of the apex bank across the nation on Friday to deposit their old notes. Reports revealed that people arrived and lined up at the front of the CBN office in Marina, Lagos, as early as 1 am today.

Someone reportedly got there around 6 am, and the number given to them was already reading above 400 on the queue, Naija News learnt.

A Kaduna State resident, Badamasi Aliyu, who spoke with Daily Trust on the development, disclosed that he was forced to pay for a hotel close to the CBN office the night before so he could get there early enough.

Unfortunately for Aliyu, he got o the CBN office at 3:00 am, and the number tag given to him was 134, indicating that some persons had arrived before him.

The collection exercise got tense, and the bank officials could not control the crowd increasing with time. Shortly, the apex bank asked the people to return to their respective Deposit Money Banks (DMBs) to store old notes.

CBN Gives Banks New Directive On Old 500, 1000 Naira Notes

Naija News understands that the CBN issued a directive to commercial banks to collect old N500 and N1000 notes to ease the process. “I am directed to convey to the Management of the Central Bank of Nigeria directive that all Deposit Money Banks commence collection of old naira notes of N1000 and N500 from their customers with immediate effect.

“Please note that customers with amounts of up to N500,000.00 and below can deposit into their bank account with their commercial bank. Any customer with an amount more than N500,000.00 should be directed to CBN for a deposit.

“Kindly comply accordingly. Thank you,” the CBN memo addressed to Branch/Operational Managers of banks had read.

According to Daily Trust, the Director of the Corporate Communications Department for the CBN, Osita Nwasinobi, confirmed the memo in a telephone interview.

Not long after Nwasinobi confirmed the issuing of the new memo, commercial banks also issued a public notice to their customers to bring old notes, with effect from Saturday.

“Dear Valued Customer, this is to inform you that our branches shall receive old N500 and N1000 notes of up to a maximum of N500,000 (Five Hundred Thousand Naira) after registration on the CBN portal. Please note that deposits of more than N500,000 (Five Hundred Thousand Naira) should be taken to the nearest CBN location.

“In addition, our branches will be open tomorrow, Saturday, 18 February 2023, to receive old notes,” a notice issued by one of the banks reportedly read.

Contradicting Statement

Unfortunately, after Nigerians had expressed relief at the latest announcement by the apex bank, Nwasinobi issued another statement claiming that the CBN did not authorise banks to accept old notes.

He not only faulted the viral memo but accused the media of spreading fake news, Naija News reports.

“The attention of the Central Bank of Nigeria has been drawn to some fake and unauthorized messages quoting the CBN as having authorized the Deposit Money Banks to collect the old N500 and ₦1,000 Banknotes.

“For the avoidance of doubt, and in line with Mr President’s broadcast of February 16, 2023, the CBN has been directed to ONLY reissue and recirculates the old N200 banknotes, and this is expected to circulate as legal tender for 60 days up to April 10, 2023. Therefore, members of the public should disregard any message and/or information not formally released by the Central Bank of Nigeria on this subject,” Nwasinobi’s new statement read.

Naija News understands that after the latest declaration by the apex bank official, some of the commercial banks who had posted the previous notice on social media started pulling them down. The development has since left many Nigerians in confusion.

“I don’t understand their denials. The communication is genuine. Banks received the same directive from CBN. We are even directed to work Saturday and Sunday except on election weekend,” a bank official who spoke to Daily Trust on anonymity reportedly said.

Also, a customer who had filled the portal before depositing old naira notes showed a message he received from CBN directing him to go to Stanbic IBTC bank to deposit the money, which was less than the amount being collected at CBN branches.

Naija News reports that there have been a series of controversies across board since the CBN issued a deadline on the validity of the N1000, N500 and N200 notes in the country.