CBN Speaks on New, Old Naira Notes Cash Swap Programme After Supreme Court Order

CBN Speaks on New, Old Naira Notes Cash Swap Programme After Supreme Court Order

  • The Central Bank of Nigeria (CBN) has decided on the cash swap programme for new and old naira notes
  • The programme allowed residents of rural and unbanked areas to exchange old naira notes for new ones.
  • Following the Supreme Court order, the CBN has announced that the programme will no longer continue

The Central Bank of Nigeria has ended its cash swap programme for rural and unbanked communities.

The programme launched on Monday, January 23, 2023, aimed to accelerate the circulation of new banknotes by exchanging the old N1000, N500, N200 notes the newly redesigned notes and/or the existing lower denominations (N100, N50, and N20, etc).

CBN cash swap
CBN cash swap programme was targeted at rural communities Photo credit: Michele Spatari
Source: Getty Images

According to the Punch, CBN acting Spokesman Isa Abdulmumin disclosed that the initiative has completed its purpose.

Abdulmumin said:

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“The programme has stopped. The cash swap was not in perpetuity and has a lifeline.”

Supreme court order

The CBN's termination of the cash swap programme occurred precisely nine days after Legit.ng reported the Supreme Court's extension of the old 500 and 1,000 naira notes until December 31, 2023.

While there has been no official response from the federal government or CBN regarding the judgment, indications suggest it will be adhered to.

However, the lack of communication from the CBN and FG to Nigerians and banks has impacted the general public's willingness to accept the old notes.

Players in the industry speaks on the cash swap programme

But in an assessment, AMMBAN National Publicity Officer, Oluwasegun Elegbade, noted that the recent mob attacks on banks would have been averted if the programme fulfilled its purpose.

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He said,

"The program has failed to deliver the desired level of effectiveness, as evidenced by the multitude of crises that have arisen throughout the country. Had it been successful, such issues would not have occurred.
"Regarding the swap, there was an expectation of greater participation. However, operators were granted significant control with minimal oversight. As a result, many states acted as they pleased, as monitoring was lacking.
"The CBN established monitoring teams in less than five states, which was insufficient. Consequently, the initiative was ineffective overall."

"Zenith *966*60#": Banks release codes for cardless cash withdrawal at ATMs

Meanwhile, in another report, Legit.ng revealed that commercial banks in Nigeria have introduced cardless ATM cash withdrawal.

To collect cash from an ATM without using a card, customers must generate a code on their mobile phones or through their mobile banking app

The latest innovation in banking technology preaches convenience and comes at a time Nigerians are battling with cash scarcity

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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