Reports: Commercial Banks Begin Payment of Old Naira Notes to Customers, Set Limits

• The continued silence of the federal government and the CBN regarding the Supreme Court judgment on old naira notes is causing confusion
• Although reports have it that some banks have resumed paying customers in old naira notes, using them for transactions remains a challenge
• The CBN is yet to release any official statement regarding the next steps for banks to take in recirculating the old naira notes

Some Nigerian banks have commenced paying old 1,000 and 500 naira notes to customers following the Supreme Court judgment, which extended the validity of the notes to December 31, 2023.

DailyTrust reports that banks in Kano and Abuja paid customers who came for withdrawals on Monday, March 6, 2023, in old naira notes.

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Blueprint also reported that banks have resumed giving customers the old N500 and N1,000 notes.

Guaranty Trust Bank (GTB) was revealed as one of the banks that paid customers in old naira notes.

An unidentified source in GTB said they received a directive from their management to begin paying out the old notes in their vault but stated that there was a condition for collecting them from customers.

The source said:

“The problem is that taking the old notes from customers will require the CBN form as we don’t have any directive in that regard."

What CBN law says on old naira notes

Legit.ng could not confirm if the CBN had officially issued a bank-wide circular instructing deposit money banks to comply.

Nevertheless, according to the CBN Act of 2007, the apex bank is a fully autonomous body that regulates financial institutions in the country.

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The CBN's duties include ensuring monetary and price stability and rendering economic advice to the Federal Government.

Banks can only act on CBN directives, which explains why the silence has created confusion surrounding the implementation of the recirculation of old naira notes.

Nigerians share their experiences

@sanwole wrote on Twitter

"I was paid at GTB Alausa Branch in N1, 000 and N500 old notes today."

@jimisu said:

"I was paid in old naira notes at Jabi branch in Abuja. However we were told only N10,000 will be paid per customers."

@amarchi56 added:

"While banks may give out old notes, traders may refuse to accept them until President Buhari gives a directive."

CBN plans to pump new naira notes into circulation

In another report, the Central Bank of Nigeria is preparing to make another N500bn new naira notes available to banks and, more crucially, Nigerians.

Due to the lack of new naira notes, Nigerians and PoS operators have been forced to continue trading with the old currency.

It is expected that the apex plan to pump more cash, pushing the value of new naira notes in circulation closer to N1 trillion.

Source: Legit.ng