Allow commercial banks process old note deposit, CPPE urges Buhari

The Centre for the Promotion of Private Enterprise [CPPE] on Sunday urged the Central Bank of Nigeria (CBN) to allow Nigerians deposit their old N500 and N1,000 notes at commercial banks across the country.

In a statement signed by Muda Yusuf, director of CPPE, the think tank said that the confusion caused by the CBN is inflicting additional pain on already traumatised millions of innocent Nigerians seeking to return the old notes.

Last Friday, reports claimed that the CBN had ordered banks to start collecting the old N500 and N1,000 notes from the public. The reports claimed that the apex bank pegged the maximum amount the banks could collect from their customers at N500,000.

But in its reaction, the apex bank urged Nigerians to disregard the claims as it never authorised the banks to take such decisions.

The developments come amid tension generated by the cash redesign policy in recent weeks.

On Sunday, the CPPE called on the CBN to consider the plight of Nigerians.

“Amid the chaos which the badly implemented policy has created, it is evidently impractical for the CBN offices to properly handle this process of receiving old currency notes which are still in abundance in the hands of millions of Nigerians,” the statement said.

“There is only one branch of the CBN office in each state of the federation and the FCT. It is practically impossible for the CBN to manage this process without subjecting our citizens to another round of harrowing experience.”

The statement explained that the experience and images of disorderliness of the past few days at the CBN offices graphically illustrate the CPPE’s position.

“We appeal to President Muhammadu Buhari and the CBN to give this process a human face. The agony and trauma inflicted by the entire management of the policy are unspeakable.

“Accordingly, we plead with the CBN to allow the old notes to be deposited at the commercial banks to ease the current pains and ordeal of returning the old notes,” it said.

Background

In October 2022, the federal government through the Central Bank of Nigeria (CBN) announced the redesign of the N200, N500 and N1000 notes.

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A deadline of 31 January was given but it was later extended to 10 February following public outrage. Three governors of the ruling All Progressives Congress (APC) ran to the Supreme Court to oppose the policy and after the first sitting on 15 February a new date, 22 February was fixed for a hearing.

However, President Muhammadu Buhari last Thursday approved the continued use of the old N200 note as the CBN also launched a portal for bank customers to deposit their old naira notes amid a scarcity of new notes.

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The president announced that the CBN deadline for the phasing out of the old N500 and N1,000 remains.

Amid the confusion, Mr Yusuf noted Sunday evening that the apex bank’s stipulated process should be simplified to accommodate millions of rural dwellers, the informal sector players, the over 30 million unbanked Nigerians and several million that are not literate.

According to him, the current guidelines which require filling of forms on the CBN portals, generating codes etc do not reckon with millions of Nigerians that seek to return their old notes who are not literate, who don’t have internet access and who are in very remote locations in various parts of the country.

“They are Nigerians and are entitled to fair consideration in the implementation process. Most of them are women, microenterprises and small businesses contributing immensely to employment, poverty reduction and social stability at the bottom of the economic pyramid of our country.

“It is bad enough that their lives and livelihoods have been terribly disrupted and disoriented.

“We plead with the CBN to review its processes in the interest of fairness, justice and social inclusion,” he said.