CBN Says N900bn Still Outside the Banking System as it Extends Deadline For Cash Swap, Return of Old Notes

CBN Says N900bn Still Outside the Banking System as it Extends Deadline For Cash Swap, Return of Old Notes

  • The Central bank of Nigeria has extended the deadline for the deposit of old naira notes
  • Godwin Emefiele, the CBN governor said this is to allow Nigerians to return old notes in their possession until February 10, 2023
  • He said about N500 billion is still held in people's homes while about N1.9 trillion of N3.2 currency in circulation is with CBN

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The Central Bank of Nigeria (CBN) said about N900 billion is still held outside the banking system in Nigeria.

The governor of the CBN, Godwin Emefiele stated this while announcing the extension of the deadline for the exchange of old naira notes for new ones from January 31 to February 10, 2023.

CBN, cash swap, old naira notes, new naira notes
CBN governor, Godwin Emefiele Credit: Bloomberg/Contributor
Source: UGC

Currency in circulaltion in 2015 and now

According to Emefiele, in 2015, the currency in circulation was just N1.4 trillion but as of October 2022, the currency in circulation in Nigeria has surged to N3.23 trillion out of which only N500 billion was within the vaults of the banks and about N2.7 trillion still held in peoples homes.

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He said since the beginning of the cash swap programme, the CBN has received N1.9 trillion with a balance of N900 billion still outside the banking industry.

The apex bank boss expressed happiness at the success of the cash swap initiative.

CBN extends deadline for cash swap

Emefiele made the announcement on Sunday, January 29, 2023, and said he met with President Muhammadu Buhari who agreed to a 10-day extension for the return of the old naira notes.

A press release by the CBN said that there are about 300 super agents spread across Nigeria for people to use in swapping their old notes.

He said the decision to extend the deadline for the exchange of old notes is to allow hardworking Nigerians who have earned their money legitimately to return old notes in their possession to the banks.

Emefiele said the decision was approved by Buhari after a meeting with him in Abuja.

Old Notes: ATMs and Other Ways to Swap Your Notes Before Feb 10

Recall that reported that Nigerian banks have reported a shortage of new naira notes despite the Central Bank of Nigeria (CBN) reporting that it has a surplus of the new notes in its vaults.

The CBN, during its many sensitisation outings across the nation, has stated that it is pleading with commercial banks to come for the new notes ahead of its January 31, 2023 deadline.

The apex bank vowed to penalise banks that continue to issue old naira notes or dispense the same through their ATMs.


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