Nigerians' hopes of easing their cash shortage were quickly dashed as many banks ran out of old and new naira notes yesterday.
The Central Bank of Nigeria (CBN) announced on Monday that the traditional N1000, N500 and N200 banknotes will remain legal tender alongside the redesigned notes until December 31, 2023, following a Supreme Court ruling. Many people breathed a sigh of relief.
However, many bank branches remained closed across the country. Those who had cash rationed it.
It turns out that CBN has yet to deliver the old banknotes to banks.
Many branches had crowds in the checkout halls and his ATMs (cash dispensers). In Jos, the capital of Plateau State, I was told I had no money.
An official who declined to give his name told our correspondent that the branch had no money to spend.
He said:
“The truth is there is no cash. Banks are interested in doing business, but CBN has yet to release cash to us.
“We sympathize with customers who are stuck, but the reality is that there is nothing we can do. we have no money "
At Imo, none of the ATMs our correspondent visited dispenses cash.
Some residents came to the bank before 6am to find they had no money.
“After paying some customers for old naira notes, we were told to return tomorrow (today),” said a resident who identified himself as Meshak.
In Lagos, banks have installed canopies so customers can sit and wait.
At many branches in Ibeju-Lekki, Victoria Island and Ikoyi, many customers queued for hours to withdraw cash. Nkiru Onyema said it took more than three hours to receive the N20,000 from the counter.
Another customer, Stephen Abiodan, said he came early but had not been served after an hour.
The limit policy meant that each customer could not withdraw more than N20,000 every day.
Many banks within Lagos' Aja axis were cashless. Their ATM didn't work.
Many of the branches we visited had only a few ATMs in operation.
It was the same story across the country.
Most of the banks in Calabar, the capital of Cross River, were packed with customers.
The cash-only branch paid each customer her N20,000. Banks also do not accept regular deposits, even from old banknotes.
The employee said customers prefer to sell new bills rather than deposit them.
In Anambra, few ATMs could withdraw old banknotes, and frustrated residents struggled to find cash.
Professor Denis Alibod, a university lecturer, said:
“The pain and suffering Nigerians go through to get money is too great!
"Is it lost working hours, insults, crowds, psychological trauma? “Governments are supposed to ease the burden on their people, but retiring governments do not.”
Residents of Benin, Edo State and surrounding areas complained about the bank's distribution of cash.
Many ATMs did not carry old and new naira notes, but banks accepted deposits in old notes.
In Ibadan, the capital of Oyo state, some customers were excluded from the checkout hall due to lack of space.
Some were lucky enough to receive N20,000.
A Bodja Access Bank official said:
“The maximum amount a customer can withdraw is her N20,000 so that the available cash reaches everyone.”
Ogun State also continued to run out of cash, and the only person who had it was paying N10,000.
Many ATMs don't dispense cash, but at Abeokuta's popular Kuto market, merchants and carriers were happy to see banknotes returned as legal tender.
In Port He Harcourt, the capital of Rivers, the bank was paying each customer only her N20,000. Dr. Uju Ogubunka, president of the Banking Customers Association of Nigeria (BCAN), said it was difficult for the CBN to meet banks' cash demands immediately.
A former registrar of the Chartered Institute of Bankers of Nigeria (CIBN) said:
“After CBN announced that old naira notes would remain legal tender, many banks immediately demanded cash.
"I think it will be awarded on a first-come, first-served basis. Not all banks can meet their cash needs immediately," he said.
In his opinion, cash will reach all bank branches and it may take time to combat the current cash shortage. An industry insider said:
“Only those branches that have cash left are paying their customers.
“Those who expect cash from headquarters will not pay their customers until they receive it.”
Old Note Rejected
Some traders in various markets in FCT's satellite cities were skeptical about collecting old banknotes.
Some of the Kalu, Nyanya and Maralaba markets said they would not accept the bill until further notice.
Nyanya market tomato trader Beatrice Ibe told the Nigeria News Agency (NAN):
"I'm afraid to collect old invoices because they will be rejected by people who buy my items."
Alphonsus Igle, a trader at the Mararaba market, said he has old banknotes but cannot use them.
Philomena Joseph, another trader at Nyanya Market, said she was the first to hear about the policy. In Enugu, businesses were still reluctant to accept old banknotes.
Customers refused to queue at ATMs where old banknotes were dispensed.
Some gas stations accept old bills, but many dealers and drivers refuse.
POS employee Pauline Ngene told our correspondent that old invoices she collected from banks were being rejected by customers.
In Ebony, the state government warned residents and businesses not to veto the old bill. Financial and Economic Development Commissioner Orlando Nuweze said in a statement:
“Please note that CBN has announced that conventional He N200, N500, and N1,000 he will continue to be accepted as legal tender until December 31, 2023.”
"Individuals or institutions, including banks, who refuse to comply with this policy should be reported."
In Minna, the capital of Niger, there was light drama when Mobil Filling seized the cars of residents who tried to pay with old naira notes.
Efosa Osayande said she received her 10,000 Nalte note from the bank.
"After buying fuel, I tried to pay with the money, but it was refused.
"They stopped me from going and said they wouldn't go until I paid," he said.
Osayande said he was two hours late and the station master intervened and asked the guards to accept the old note.
Banks in Minna, Bida and Kontagora paid for the old banknotes, but most refused to deposit them when asked to do so.
None of the ATMs inside Metro Minna gave me cash, but he was paid over-the-counter only N10,000 from some branches that had cash.
A resident of Jos, Mazi Uchendu, was unable to deposit old banknotes in his First Bank branch.
He said:
"I wanted to deposit cash, but they asked me to generate a code. I got angry and left."