HALLMARK NEWS
Commercial banks have resumed issuance of old N500 and N10000 notes to customers over the counter and through the Automated Teller Machines (ATMS) in compliance with the Supreme Court ruling on the naira redesign policy of the Central Bank of Nigeria (CBN) which insisted that N200, N500 and N1000 old notes remain legal tender till December 31st, 2023. But the hardship imposed on Nigerians by the cash scarcity has not abated, as the notes are being rejected, even though banks continue to disburse them to customers.
The CBN and Federal government deafening silence over the Supreme Court’s ruling has complicated an already chaotic situation, thereby causing confusion over the validity of the N500 and N1000 old notes. Amidst the uncertainty, the cash scarcity has worsened as business operators await CBN’s directive before accepting the N500 and N1000 old notes.
Traders have failed to accept old notes from people even as banks disburse the old notes leading to more hardship in the country. However, the N200 old note is the only old note business operators accept following President Buhari’s approval of its use until April 10, 2023.
The cash crisis has made life difficult for Nigerians, majority of workers currently work from home, businesses have experienced a significant loss owing to failed transactions. Some small scale businesses have shut down. For some families whose survival is dependent on daily income, the cash shortage has led to skipping of meals and lack of basic needs.
Many Nigerians thought the cash crisis would subside after the presidential election based on the belief that the naira redesign was motivated by political reasons. Barely two weeks after the presidential election, there is no improvement in the situation.
Aside political reasons, there were speculations that the naira redesign will control inflation, but the data from the National Bureau of Statistics on inflation rate contradicted this belief. In January 2023, the inflation rate accelerated to 21.82 percent, representing 0.47% increase from the 21.34% recorded in the previous month. Soaring food prices and a weaker naira currency were the main drivers of this.
Grace Idongesit, a 33 year old mother of three shared her experience with our correspondent.
“My family savings is stuck in the bank. My children, husband and I can barely feed. As I speak with you, I don’t know where our next meal will come from. I have visited more than seven POS merchants, they told me no cash.
“We were instructed to deposit the old notes in the bank, which I did. I can’t withdraw my money, I’m unable to transfer because the mobile app is acting up; traders are rejecting old notes, no new currency anywhere as well. How exactly does CBN expect us to survive? she bemoaned.
