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Posted By Udokabestluv On January 31st, 2023

The Central Bank of Nigeria (CBN) has directed commercial banks to, henceforth, pay customers over-the-counter with the lower Naira denominations.

These include N100, N50, N20, N10 and N5 notes regardless of how much a customer is withdrawing.

This is contained in the Banker’s Committee directive to all commercial banks in the country while also announcing that payment of old N1,000, N500, and N200 notes across the counter should be stopped.

With this development, bank customers are encouraged to use their alternative channels for their transactions, while bank customers who insist on the new naira notes are to use Automated Teller Machines (ATMs).

The directive was issued on Monday, January 30, 2023 after the Bankers’ Committee meeting in Lagos.

Commercial banks will henceforth pay customers over-the-counter with N100, N50, N20, N10 and N5 notes regardless of how much a customer is withdrawing.

The Banker’s Committee gave the directive to all commercial banks in the country while also announcing that payment of old N1,000, N500, and N200 notes across the counter should be stopped.

With this development, bank customers are encouraged to use their alternative channels for their transactions, while bank customers who insist on the new naira notes are to use Automated Teller Machines (ATMs).

The directive was issued today, Monday after the bankers’ committee meeting in Lagos

Meanwhile, the CBN on Sunday announced in a press statement personally signed by its governor, Godwin Emefiele that the deadline for the exchange of old naira notes is now February 10.

The statement also revealed that there was still N900 billion outside banks and wanted it before the new deadline of February 10.

Emefiele noted that CBN staff currently on mass mobilization and monitoring together with officials of the EFCC and ICPC will work together to achieve the objectives of the naira redesign which include making Nigeria’s Monetary Policy Committee (MPC) decisions more effective and supporting the efforts of Nigeria’s security agencies in combating banditry and ransom taking.

To avoid regulatory hammers, many banks have directed their core and non-core operations staff to ensure they don’t have situations of cash shortages in their Automated Teller Machines only to be found that they have the new naira notes in their vaults.

“We deployed all our staff, particularly the Assistant Directors, Deputy Directors and Directors in Abuja to proceed to all CBN branches Nationwide to join the mass mobilization campaign and monitoring programs, working with the Deposit Money Banks, agents and our Branch controllers across the 36 states of the Federation.

“This is meant to ensure compliance with all our guidelines already issued for smooth implementation of the program. Although we have received some reports of breaches by some bank branches, we have agreed with Executive Chairmen of the EFCC and ICPC to assist us, by sending their staff to all CBN and DMB branches nationwide to join in monitoring the implementation of these guidelines. The aim is to ensure compliance with the laid down guidelines”, the CBN governor said in the statement.

Emefiele said, “We are happy that so far, the exercise has achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system. Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes; leveraging the Agent Naira Swap initiative as well as the CBN Senior staff nationwide sensitization team exercise.”

Source: https://thewillnigeria.com/cbn-directs-banks-to-pay-lower-naira-denominations-across-the-counter/