New Naira Notes Decline in Circulation as Banks Load ATMs With Cash, CBN May Enforce Use of eNaira
- There is a massive decline in the circulation of new naira notes as the CBN pumps more old notes into circulation
- A report says the CBN may begin the enforcement of eNaira notes as it begins to train PoS operators in its use
- Some bank officials have been quoted as saying that they have not received new notes in the last month
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Nigerians have witnessed, with dismay, how the newly redesigned new naira notes have reduced in circulation, leaving Nigerians to grapple with the old notes that are mostly torn and worn out.
The development comes as the Central Bank of Nigeria (CBN) directed the commercial banks to open on Saturdays and Sundays.
CBN may enforce the use of eNaira
The Guardian reports that the CBN has ceased the distribution of new naira notes to commercial banks, causing their scarcity.
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Several banks have been seen loading ATMs with and dispensing the old naira notes as they pay the same over the counter.
Some bank branches said they did not receive the new notes from the CBN in the last month despite improvement in the circulation of old notes.
The Guardian quoted a source saying CBN may soon enforce eNaira as it begins nationwide training for Point of Sale (PoS) operators in its use.
According to the source, banks’ staff are not trained in the technicalities of digital currency.
Use of eNaira jumps 12-fold
Bloomberg reports that the number of eNaira wallets has spiked more than 12-fold to 13 million since October 2022, and the value of transactions jumped 63% to N22 billion in 2023.
CBN’s Acting Director of the Corporate Communications Department, Isa Abdulmumin, stated that banks received substantial cash for circulation to their customers.
Abdulmumin said the CBN directed all commercial banks to load their ATMs and perform physical operations in the banking halls on weekends.
The CBN spokesman added that Godwin Emefiele, the apex bank governor, would lead teams to monitor compliance nationwide.
CBN asks FG to use eNaira to transfer N368.8 billion to Nigerians
Recall that Legit.ng reported that the Central Bank of Nigeria had pitched the eNaira to the federal government as the best alternative for sharing $800 million, about N368.8 billion, in its National Social Safety Net Programme Scale Up.
The pitch by the CBN is an effort to drive and strengthen its cashless policy.
The pitch was contained in CBN’s National Fintech Strategy document.