Nigerians are still transacting in old Naira notes, ignoring the Central Bank of Nigeria (CBN) and the money deposit banks after the February 10, 2023 deadline.
Most of the Nigerian public believes that the deadline is February 17, 2023, which is the seven days grace given by the CBN after the February 10 deadline.
CBN had on Friday removed the countdown to February 10, 2023, live chart from its website, as the deadline expires.
BusinessDay visited some open markets, and motor parks across Lagos to interview several traders and found that the traders and commuters were confidently collecting the old notes for various reasons.
Some are still collecting owing to the Supreme Court ruling while others believe that the official deadline by CBN is on February 17.
Rashidat Kazeem, a wholesale seller of onions in Mile 12 Market said she is still accepting the old naira notes because she believes that the Supreme Court order overshadows that of the Central Bank.
“The Supreme Court has asked the CBN not to ban the use of the old naira notes and its ruling supersedes that of CBN,” Kazeem said.
“I will continue to collect the new naira notes until the Supreme Court says otherwise,” she added.
According to her, the apex bank has not come out to say anything since the ruling, noting that it implies that it is giving in to the restraining order by the Court.
Mohammed Hassan, a yam seller in Mile 12 Market said he still collects the old notes because the deadline is February 17 and not 10 as many people taught.
“CBN added an extra one week to the deadline after announcing February 10 but many people are still not aware and that is why they were thinking the old notes are no longer legal tender,” Hassan said.
Chuks, a dealer in alcohol and wine at Apongbon market said that he still receives the old note because the CBN has moved the deadline by seven days.
“When I have excess cash I give it to a PoS guy who is my friend at no cost. I have not been to the bank in the last two months.
“There are a lot of people in need of cash so there’s no need to go to the bank.
“It is hard to reject old notes because the market is slow so if the customer you get brings old notes you will have no choice but to accept them. I have a stash of new notes I have not touched too,” he said.
Another dealer in drinks Apongbon said he has not gone to the bank in the last two weeks, saying he sells his old notes to POS operators.
One of the traders who deal in wholesale shoes didn’t want to collect old notes saying he prefers transfer to old notes because the deadline was yesterday.
At Agboju market a PoS operator was going around helping those who needed cash to buy food items but at a cost. It costs N700 to withdraw N5,000 (old notes).
“I just bought fuel for N7,000 at the petrol station. I paid with old notes. Where do you see the new Naira,” Ogadi Johnson, a transporter said.
The banks on the Island and Mainland were closed and the ATM was not operational. Some people now rely on traders to get cash.
The CBN had given February 10, 2023 as the deadline for the phasing out of high-value naira notes, after which it ceases to be a legal tender.
This has been criticized by some Nigerians who have called for further extension of the deadline.
The Supreme Court on Wednesday ruled that the old 1000, 500 and 200 naira notes can still be used as legal tender in Nigeria.
The CBN had clarified its position on February 10, 2023, deadline for phasing out of Nigeria’s higher denomination of the banknotes, saying that the old notes would cease to be legal tender after the set date, and can no longer be used for any form of transaction afterward.
Osita Nwanisobi, director of the corporate communications department at the CBN, who clarified at the end of the earlier deadline of January 31, 2023, said in line with the provision of Section 20(3) of the CBN Act, Nigerians would have the opportunity to redeem the face value of the Naira only at the Central Bank, after the currency has lost its legal tender status, subject to meeting certain conditions.
Reiterating the pledge of the CBN governor Godwin Emefiele at the meeting with the House of Representatives Ad-hoc committee on Tuesday, January 31, 2023, Nwanisobi said Nigerians would not lose their money, even as he urged citizens to take advantage of the extended deadline of February 10, 2023 to deposit the old banknotes currently in their possession at their banks or through mobile money agents.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
