According to a reliable report from The PUNCH, the Central Bank of Nigeria has concluded plans to release all N1,000, N500, and N200 notes in its possession to Deposit Money Banks. This decision is expected to alleviate the months-long hardship and distress Nigerians have been experiencing due to the CBN’s controversial naira redesign policy, which caused a severe shortage of both old and new naira notes throughout the country.
The CBN’s latest move comes after the Supreme Court ordered that old N1,000, N500, and N200 notes should remain legal tender until December 31, 2023. On Wednesday night, senior officials from the CBN and commercial banks confirmed to The PUNCH that Governor Godwin Emefiele had instructed DMBs to commence the distribution of old N1,000, N500, and N200 notes to the public from Thursday (today).
Emefiele & Banks’ CEOs meet
Sources also report that during a meeting on Wednesday evening, CBN Governor Godwin Emefiele informed the CEOs of DMBs that the central bank would begin releasing all old notes in its possession to commercial banks from Thursday. Additionally, it is said that the CBN will be cancelling all controversial cash withdrawal limits that were recently implemented.
The CBN will also reportedly commence the release of crisp old notes to DMBs on Thursday, followed by the release of the ones deposited by commercial banks. Customers will no longer be required to generate a code before depositing old notes, according to the CBN. A bank CEO who preferred to remain anonymous shared that the CBN governor informed the CEOs that the old N1,000, N500, and N200 notes would be released to commercial banks beginning Thursday, with the aim of flooding the economy with cash and alleviating the challenges that Nigerians have been facing. The CBN will also be cancelling the cash withdrawal limits it recently implemented, allowing individuals to withdraw up to N500,000 over the counter and corporate bodies up to N5m. The release of old notes into circulation will begin immediately, and banks have been directed to collect the old naira notes they deposited with the CBN from the old offices.
Sources suggest that the country will be flooded with naira notes before the end of the week as a result of the CBN’s decision. It is speculated that this decision was made in order to avoid the planned picketing of CBN offices nationwide by the Nigeria Labour Congress (NLC), who were protesting against the lingering naira crisis and fuel scarcity in the country. The NLC President, Joe Ajaero, had announced plans to picket the CBN headquarters and state offices, citing the worsening hardships faced by Nigerians. Prior to this, the NLC had issued a seven-day ultimatum to the Federal Government to address the scarcity of naira notes and fuel.
Despite the CBN’s statement that it had complied with the Supreme Court’s ruling to keep the old N200, N500, and N1000 notes as legal tender until December 31, it has been reported that banks have continued to limit the amount of cash they issue to customers, suggesting that they have not received sufficient cash supplies from the CBN.
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Labour strategises for planned strike
Meanwhile, the Nigeria Labour Congress (NLC) had planned to picket the offices of the Central Bank of Nigeria (CBN) nationwide due to the cash crunch and fuel scarcity in the country, which has worsened people’s hardships. The union had given the Federal Government a one-week ultimatum to address the situation. However, before the planned picketing could take place, the CBN announced that it would start releasing all old notes in its custody to commercial banks and cancelling all controversial cash withdrawal limits. The plan is to flood the economy with cash and ameliorate the challenges Nigerians have been passing through. A top source close to the CBN said the apex bank took the decision to avert the planned picketing of the CBN offices nationwide by supporters and leaders of the NLC.
The Nigeria Labour Congress (NLC) has directed all its affiliate unions and state councils to mobilize for a nationwide mass action after the Central Bank of Nigeria (CBN) failed to comply with its one-week ultimatum to make cash available for Nigerians. The NLC President, Joe Ajaero, stated that the situation appeared to be getting worse despite the Supreme Court order allowing the old N500 and N1000 notes to circulate with the new notes till December 31. Ajaero explained that workers could no longer access cash to pay fares to their respective workplaces or buy food for their families. As a result, the NLC has called for a total shutdown of all CBN offices nationwide, starting from next week Wednesday, until further notice. Workers have been directed to stay at home and join in the picketing exercise.
The labor leader has expressed that the fuel scarcity and cash crunch are critical issues for the NLC as they affect all Nigerians. The Secretary-General of the National Union of Aviation Transport Employees, Ocheme Abah, has stated that the unions will comply with the NLC’s directive on the picketing action. The Acting Director of Corporate Communications at CBN, Mr Isa Abdulmumin, could not comment on whether the CBN would release the old notes to commercial banks, but stated that the apex bank would communicate its position on the matter on Thursday.
